The Goa government will decide on auctioning additional mineral blocks only after a thorough quantification of iron ore reserves in the respective areas, a senior state officer confirmed. This strategic move comes as the coastal state steadily revives its crucial mining industry, which has faced multiple shutdowns over the past decade.
Current Status of Auctioned Blocks and Future Plans
So far, the state has successfully auctioned 11 mineral blocks. However, operations have commenced only in five of these blocks. The officer indicated that work on two more blocks is set to begin shortly, marking a phased reactivation of the sector. In a significant development aimed at boosting participation, the state reported that 44 tender documents were purchased by various mining companies for an upcoming e-auction.
This e-auction, scheduled for January next year, will see 22 million tonnes of low-grade iron ore being put up for sale. To ensure sustainable extraction, the government is developing a mechanism to allocate maximum production limits for auctioned blocks. This is in line with the Supreme Court's cap of 20 million tonnes for iron ore exports from the state.
The Rocky Path: From Shutdown to Restart
Goa's mining sector has endured a turbulent journey. Activities first ground to a halt in September 2012 following the tabling of the Shah Commission report in Parliament. A brief resumption in 2015 was cut short in March 2018 when the Supreme Court quashed the second renewal of 88 mining leases.
The industry finally saw a ray of hope on April 4, 2024, when it officially restarted after a six-year shutdown. The revival was led by Vedanta Goa, which began fresh extraction at Block I. Adding further momentum, the Supreme Court permitted dump mining activities in the state based on an expert committee's recommendations.
Dump Handling Policy: Unlocking Legacy Ore
This judicial nod led to the formal notification of the Dump Handling Policy, 2023, on September 14, 2023. This landmark policy created a framework to manage the staggering 700 million tonnes of low-grade iron ore lying inside and outside mining leases across Goa. It paves the way for the export of up to 25 million tonnes per annum from these dumps.
In a recent boost, the Centre released Rs. 400 crore to the state to support its mining revival goals. This fund includes Rs. 300 crore for making two mineral blocks operational and an additional Rs. 100 crore as a reward for Goa emerging as the top performer in Category B of the State Mining Readiness Index (SMRI). This financial assistance is targeted to help Goa meet its objective of making two mining blocks operational in the 2025-26 period.
