India: Goa govt hopes to invite bids for about 15 iron ore mines before October

The Goa government hopes to invite bids for about 15 mineral deposits before October 2022, according to senior government officials.

According to those in the know, the mineral blocks are likely to include five composite leases (areas that had long lapsed) and 10 iron ore mines out of 88, subject of a long-winding legal battle that include mines of Sesa Goa.

Earlier this week, Chief Minister Pramod Sawant who had finally broken free from a decade-long stalemate over the future of iron ore mining in the state, announced that auctions would take place after two or three months.

By then the state hopes to dispose of pending investigations and claims against alleged violations, Sawant said after a review meeting with senior officials of the state.

Industry sources suggested that the 10 mines whose reserves till G2 level have been verified by Mineral Exploration Corporation Ltd. (MECL) are dispersed - some in the north, a few in the Bicholim region and some others in south Goa. The five composite areas, being auctioned for prospecting and mining, are likely to be reserves of lesser quality compared to the others that had been operated until recently.

The state government is under pressure from the Centre to get the auctions underway. Goa's decision to finally act, by issuing notices to the ex-lessees to vacate, has been challenged by more than a couple of dozen mine owners who have moved court against the notices filed under Rule 12 (1) (hh) of the Mineral Concession Rules 2016. The matter will be heard by the High Court of Bombay at Goa in the first week of July.

The more pressing concern for a state whose iron ore was largely exported will, however, be the impact of the export duty on iron ore being raised to 50% for all grades. The export duty announcement on 22 May has already led mineral-rich Odisha to shelve an ongoing set of mine auctions.

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