The government of Goa has taken a significant step in revitalizing its mining sector by putting six more iron ore blocks up for auction. This move indicates that the state has now utilized approximately 90% of its fresh iron ore extraction capacity, marking a crucial phase in its mineral resource management strategy.
Exhausting Extraction Capacity
Previously, the state government had auctioned 12 mineral blocks, which granted mining companies the ability to extract up to 12.5 million tonnes of fresh iron ore per year, based on environmental clearances. With the addition of these six new blocks, an extra capacity of 6.5 million tonnes will be exhausted. This brings the total to around 19 million tonnes annually, closely approaching the state's overall capacity of 20 million tonnes for fresh iron ore extraction.
Remaining Scope and Auction Details
Narayan Gad, the director of mines and geology, highlighted that despite nearing full capacity, the state still has room to auction a few more mineral blocks. He noted that there is an available capacity of another two million tonnes for fresh extraction, providing some flexibility for future initiatives.
The Directorate of Mines and Geology (DMG) has initiated the fourth auction of iron ore mines in Goa, with the six blocks scheduled to go under the hammer on April 16. The government anticipates generating Rs 230 crore as an upfront payment through this auction process, which could significantly boost state revenues.
Geographical Distribution of Blocks
The six blocks are strategically located across Goa, with five situated in North Goa and one in South Goa. In North Goa, the blocks are distributed as follows: two at Cudnem, two at Pissurlem, and one at Adwalpale Moitem. Meanwhile, the Cavrem–Maina mineral block in South Goa is known for its deposits of both iron ore and manganese ore, adding diversity to the auction offerings.
Auction Timeline and Previous Successes
The department will keep the auction documents on sale until March 16, after which the bidding process for mining companies will commence on April 16. This structured timeline ensures transparency and allows interested parties ample time to prepare their bids.
As of December 12, a total of 12 iron ore mineral blocks had been auctioned in the state as part of efforts to revive the mining sector. These included mines at Bicholim, Sirgao-Mayem, Cudnem, and Kalay, with several operated by prominent firms such as Vedanta Ltd and Fomento Resources. Out of these 12 blocks, five are currently operational, demonstrating progress in reactivating mining activities.
Future Operational Plans
In the near future, one more block is set to start operating at Kalay within the next 15 days, followed by another mineral block likely to commence operations at Honda a month later. These developments underscore the ongoing momentum in Goa's mining revival, aiming to leverage its natural resources for economic growth while adhering to environmental regulations.
