In a significant push to revive Goa's crucial mining sector, Chief Minister Pramod Sawant announced on Friday that the state government will auction six new mineral blocks next month. This comes as 40% of the state's existing mineral blocks have become operational, marking steady progress in an industry recovering from a prolonged shutdown.
Current Status and Upcoming Auctions
Out of a total of 12 mineral blocks, operations have commenced in five. Four more blocks are expected to begin operations soon, according to the Chief Minister. The upcoming auction of six additional blocks scheduled for next month is set to further expand activity. The state's first-ever mineral block auction was conducted in December 2022.
The process has faced some delays, with three mineral blocks currently awaiting forest clearance from the central government. To ensure transparency and proper valuation before auctions, the state sent a list of six blocks to the Geological Survey of India (GSI) for estimating iron ore reserves. The GSI has since provided the reserve quantity data for each block.
Navigating Legal Limits and a Turbulent Past
In response to a Supreme Court cap that limits iron ore exports from the state to 20 million tonnes, the government is developing a mechanism to allocate maximum production limits for each auctioned block. The mining industry in Goa has endured a volatile decade.
Mining activities first came to a halt in September 2012 after the Shah Commission report was tabled in Parliament. While operations resumed in 2015, they were halted again in March 2018 when the Supreme Court quashed the second renewal of 88 mining leases. The industry finally restarted on April 4, 2024, after a six-year shutdown, with Vedanta's Sesa Goa beginning fresh extraction at the Bicholim mineral block (Block I).
Dump Handling and Financial Boost
A major focus of the revival is managing legacy mining waste. Following a Supreme Court order that permitted dump mining based on an expert committee report, the state notified the Dump Handling Policy on September 14, 2023. This policy aims to address approximately 700 million tonnes of low-grade iron ore lying inside and outside mining leases across Goa. It allows for the export of up to 25 million tonnes of ore from dump handling annually. Sawant confirmed that four companies have already received permission to start dump handling activities.
In a related development, the central government has released Rs 400 crore to support Goa's mining revival goals. Of this, Rs 300 crore is earmarked for making two mining blocks operational by the 2025-26 financial year. The remaining Rs 100 crore is a reward for the state emerging as the top performer in Category B of the State Mining Readiness Index (SMRI).
Meanwhile, the state has put 22 million tonnes of low-grade iron ore up for e-auction this month. Government officials reported strong interest from the industry, with 44 tender documents purchased by mining companies. The scrutiny of these documents is currently in progress.
