Goa Government to Secure 52% Revenue from Low-Grade Iron Ore Dumps
The Goa government has officially informed the Bombay High Court that it expects to receive a substantial 52% of the total revenue generated from the sale of low-grade iron ore dumps located outside lease areas on private properties. This announcement came during a recent hearing focused on the state's dump handling policy, highlighting a significant financial strategy for resource management.
Premium Pricing and Revenue Breakdown
In a detailed submission, the government outlined that it has fixed a premium of 22% on the Indian Bureau of Mines (IBM) price for low-grade iron ore. This premium applies specifically to erstwhile leaseholders who are authorized to handle dumps situated outside their designated lease areas. For example, if the IBM price is set at Rs 100 per tonne, mining companies purchasing the ore at auction must pay an additional Rs 22 per tonne to the government as part of this reserve price mechanism.
Advocate General Devidas Pangam, representing the state, elaborated during the court proceedings that the revenue structure extends beyond the premium. In addition to the 22% premium, the government will also collect a 15% royalty, contributions to a fund for the Department of Mines and Geology (DMG), and allocations to an iron ore permanent fund. When combined, these components total 52% of the revenue, ensuring a comprehensive financial benefit for the state from the dump sales.
Policy Framework and Legal Backing
The dump handling policy is grounded in the Goa Mineral Policy of 2013, which governs the allocation of dumps on private properties to mining companies. According to Pangam, this policy mandates that mining companies must pay conversion fees and fines to handle the dumps, reinforcing regulatory compliance and environmental considerations.
Notably, Pangam emphasized that the state government's dump handling policy has received endorsement from an expert committee of the Supreme Court. The committee has accepted the policy and recommended its implementation, providing strong legal validation and support for the state's approach to managing iron ore resources.
Conditions for Dump Handling
As per the established policy, dump handling outside leasehold areas is permitted only under specific conditions. It is allowed exclusively in cases where the land has been legally converted to non-agricultural use. This stipulation ensures that the activities align with land-use regulations and minimize potential conflicts or environmental impacts, maintaining a balance between economic interests and sustainable practices.
The government's proactive measures in this regard aim to optimize revenue from existing mineral resources while adhering to legal and policy frameworks, setting a precedent for efficient resource management in the mining sector.
