The Goa government has received a lukewarm response to the second phase of the e-auction of low-grade iron ore dumps, with an average of about two bids submitted for each dump. After opening the technical bids, the Directorate of Mines and Geology (DMG) received 59 bids for 24 low-grade iron ore dumps, though it had initially received 110 bid documents.
Bid Evaluation Process
DMG Director Narayan Gad said 59 bids were received, but the final number of qualified bidders will be known only after the detailed project reports (DPRs) submitted by mining companies are evaluated. The 24 dumps contain more than 41 million tonnes of low-grade iron ore. The DPRs are being evaluated by The Energy and Resources Institute (TERI).
Gad said that if TERI raises queries on any DPR, mining companies will be given an opportunity to clarify them to ensure maximum participation in the auction process.
Comparison with First Phase
In the first phase of the e-auction, only one of the five dumps put up for bidding was successfully auctioned. The second phase covers 24 dumps located across Sanguem, Dharbandora, Bicholim and Sattari talukas, along with one dump in Sirsaim, Bardez. Most of the dumps are in South Goa.
Dump Sizes and Locations
While most dumps range between 1 lakh and 26 lakh tonnes, the largest dump, located at Sonus in Sattari, contains 10 million tonnes of ore. In the first auction round, the largest dump attracted bids, while the four smaller dumps received none.
Reserve Price and Supreme Court Approval
The state government has fixed a reserve price of 22% for the e-auction. For example, if the Indian Bureau of Mines price for low-grade iron ore is Rs 100 per tonne, a successful bidder purchasing ore at the reserve price would pay Rs 22 per tonne to the government.
The Supreme Court permitted the Goa government to undertake dump mining activities in accordance with the recommendations of an expert committee. Subsequently, the government notified the Dump Handling Policy, 2023, on September 14, 2023. The policy provides a framework for handling around 700 million tonnes of low-grade iron ore lying within and outside mining leases across Goa and allows the export of up to 25 million tonnes of ore annually from dump-handling operations.
