TERI Scrutiny Delays Goa's Low-Grade Iron Ore Dump Auction
Panaji: A significant delay has hit the planned auction of low-grade iron ore dumps in Goa, following the postponement of the scheduled sale by the state government a month ago. The process has now encountered further hurdles as The Energy and Resources Institute (TERI) has raised critical queries regarding the Detailed Project Reports (DPRs) submitted by the mining companies involved.
Scrutiny Process and Government Response
The Directorate of Mines and Geology (DMG) had forwarded the DPRs to TERI for a thorough technical and environmental review. Narayan Gad, the Director of DMG, confirmed the development, stating, "TERI made some observations on the DPR submitted by bidders, and the DMG forwarded those queries to bidders for clarification. They have to submit their reply by mid-February." This step is crucial as it ensures that the auction process adheres to regulatory standards and sustainable mining practices.
Auction Details and Financial Expectations
The state government had put up approximately 22 million tonnes of low-grade iron ore for e-auction, attracting significant interest from the mining sector. A total of 44 tender documents were purchased by various mining companies, indicating robust participation. The government anticipates generating an upfront revenue of around Rs 150 crore from this auction. Additionally, once the dump handling commences, companies will be required to pay royalties and premiums to the state, further boosting Goa's revenue streams.
Reserve Price and Past Auction Issues
In a strategic move, the government set a reserve price of 22% for the e-auction of low-grade iron ore dumps. For example, if the Indian Bureau of Mines price is Rs 100 per tonne, mining companies purchasing the ore at the reserve price would pay Rs 22 per tonne to the government. However, the auction process has faced previous disruptions. After conducting the first day of e-auctioning last year, the DMG cancelled the remaining three phases scheduled for January 31 and February 3 and 4, 2025, citing a "technical issue." Subsequently, in July, the entire process was annulled as the government decided to revise the auctioning procedure for low-grade iron ore.
Policy Framework and Long-Term Goals
The Dump Handling Policy of 2023 has been instrumental in addressing the massive accumulation of low-grade iron ore in Goa. This policy aims to manage the estimated 700 million tonnes of low-grade iron ore lying both inside and outside mining leases across the state. A key objective is to facilitate the export of up to 25 million tonnes per annum, thereby leveraging this resource for economic gain while mitigating environmental concerns associated with ore dumps.
The current queries from TERI underscore the complexities involved in balancing economic incentives with environmental and regulatory compliance. As bidders work to address these observations by the mid-February deadline, stakeholders await further developments that could shape the future of mining activities in Goa.
