State gets 125 bids for auction of 18 low-grade iron ore dumps

Panaji: State govt received 125 bids for 18 low-grade iron ore dumps that were put up for auction. The directorate of mines and geology is scrutinising the bids. Once the bids are scrutinised, successful bidders will participate in the auction of dumps. The 18 iron ore dumps will be e-auctioned from Jan 22 to Jan 25.

A total of 173 mining companies and traders showed interest in purchasing these dumps. The govt fixed a reserve price of 22% for the first e-auction of low-grade iron ore dumps in the state. If the Indian Bureau of Mines (IBM) price is Rs 100 per tonne for low-grade iron ore and the mining companies purchase the low-grade iron ore at auction at the 22% reserve price, then the company must pay Rs 22 per tonne to govt.

During the auction, mining companies will increase the bid percentage to compete with each other to purchase the dump, a senior govt officer said. Govt also fixed criteria for traders and mining companies to participate in the e-auction, i.e. the bidders should have a minimum net worth of Rs 25 crore. The 18 iron ore dumps will be e-auctioned from Jan 22 to 25.

Govt put up 18 low-grade iron ore dumps with a total quantity of around 30 million tonnes for auction. The ore put up for auction is graded between 45 and 51. It can export up to 25 million tonnes from dump handling. Out of 18 dumps, 15 are in South Goa.

The Supreme Court allowed the Goa govt to carry out dump mining activity in the state in accordance with an expert committee’s report. Accordingly, the policy for regulating iron ore dump handling was notified on Sep 14, 2023. The Dump Handling Policy, 2023, paved the way to deal with the 700 million tonnes of low-grade iron ore lying inside and outside mining leases across Goa and to export 25 million tonnes per annum. A senior officer said the dump handling policy was challenged in the court.

Last week, the state cabinet amended the dump mining policy to allow erstwhile leaseholders to handle the low-grade iron ore dumped by them in another mining lease that was never operated.