India: Fomento sets highest floor price of 86.5% for Sirigao-Mayem iron ore mine at Goa auctions

Goa-based mining company Sociedade De Fomento Industries Pvt. Ltd. has outbid others in the technical round to set 86.05% as the floor price for the Sirigao-Mayem iron ore block which is being auctioned as part of the Goa iron ore auctions on 15 December, 2022, as per industry sources.

The Goa government is currently auctioning four iron ore blocks; the first Bicholim was bagged by Vedanta with a bid of 63.55%. Fomento, which did not bid for Bicholim, has offered a far steeper initial price for the Sirigao block. The other contenders in the fray were JSW Steel, MSPL, AM/NS India and Shri Jagannath Steel and Power Ltd.

The Sirigao-Mayem mineral block is spread across an area of 171.25 hectares. The mine has reserves of 23.584 mnt of iron ore with the average grade being Fe 56.47%. The bids essentially reflect the share of average sale price the company is willing to give as premium to the state government, apart from from royalty and other dues.

Eleven companies had placed technical bids for the four iron blocks in Goa, which are being auctioned without environmental clearances (EC). The state government plans to follow these with deposits that will not require fresh clearances. The auctions are taking place after years of litigation, and will indicate interest in Goa's relatively low-grade ore that has primarily been exported over the last 60 years.