The Goa government is set to resume mining operations at approx. 40 low-grade iron ore dumps across the state. This move includes auctioning over 20 dumps and directly allotting more than 16 dumps to former leaseholders. The state aims to export 25 million tonne of low-grade iron ore as part of its mining strategy.
E-auctions for these ore dumps will commence shortly. The government is identifying additional dumps for auction beyond the 18 already put up, which had attracted 125 bids from 173 mining companies and traders. The reserve price for the first auction was fixed at 22 percent of the Indian Bureau of Mines (IBM) price. For example, if the IBM price is Rs 100 per tonne, successful bidders will pay Rs 22 per tonne to the government.
The auction requires bidders to have a minimum net worth of Rs 25 crore. The Supreme Court permitted Goa to conduct dump mining in line with an expert committee’s recommendations, and a regulatory policy for iron ore dump handling was notified on 14 September, 2023. This initiative is expected to boost mining activities while ensuring regulatory compliance and economic growth in the region.