India: 11 companies in race for Goa iron ore mine block auctions

Eleven companies have placed technical bids for four iron blocks in Goa. The auctions are taking place after years of litigation and will indicate interest in Goa's relatively low-grade ore that's primarily been exported over the last 60 odd years.

ArcelorMittal and JSW Steel who have plants in the west coast have evinced interest in three of the four mines - Bicholim, Sirigao Mayem and Monte de Sirigao. Old Goan miners such as Vedanta, VM Salgaocar, Fomento Resources, Rajaram Banderkar Sirgai mines and Salgaocar Shipping will also be bidding for these mines that some of them once operated - Bicholim in Vedanta's case. This time the mining rights will go to the one that pays the highest premium. The four mines, that have no valid environment and forest clearances, are the first the state government is putting up for auction, intending to follow it up with leases that have permits and can be operationalised faster.

Karnataka-based miner MSPL, which had raised concerns of the reserves data, has also placed technical bids for all four blocks. Also interested are the trader Kai International, pellet maker Shri Jaganath Steel and Power and Kirloskar Ferrous. Monte de Sirigao will see the widest participation, with ten placing technical bids, and Kalay the least.

Of more than 50 tenders sold, only 28 technical bids have been filed. Of the qualified ones, those that offer the highest initial price offers, will then participate in the auctions starting 15 December.