Goa opens 4 iron ore mining blocks for auction

Mining is not expected to immediately resume as the tender document specifies a successful bidder will have to first obtain forest, wildlife, and environmental clearances afresh

The Goa government on Friday invited bidders to submit financial and technical bids for four iron ore blocks by November 21, beginning the process to resume mining halted in the state in September 2012.

Mining is not expected to immediately resume. (HT PHOTO)

Monte de Sirigao, Sirigao-Mayem Bicholim, and Kalay blocks will be the first to go under the hammer of the 90-odd for which mining leases were active when the ban came into effect. Several of these leases have now been amalgamated into blocks for auction.

November 15 is the last date for the purchase of the tender documents after payment of the fee on an e-auction platform. November 21 is the last date for submission of the bids.

In May, the government asked leaseholders, who held possession of the 88 mining leases, to hand over their possession by June. The Supreme Court cancelled the renewals of the leases.

The Bombay High Court at Goa has reserved an order on a petition challenging the Goa government’s decision to take back the leases.

The erstwhile Portuguese colonialists granted mining rights in 1906 to shore up state finances via a decree. The first mining concession was issued in 1929. Between the 1930s and the 1950s, 791 mining concessions were granted giving the holders rights to mine in perpetuity without any fixed tenure.

The concessions were converted into leases under the Mines and Minerals Development Act, 1987. The tenure of the leases ended in 2007, the Supreme Court ruled while asking the government to issue fresh leases. The legacy leaseholders continue to fight their claims for valid leases in the Supreme Court.

According to the Goa Mineral Ore Exporters Association of legacy leaseholders, mining in Goa grew to 54 million tonnes annually in 2012. From 2004-05 to 2010, it nearly doubled from around 24 million tonnes to 45 million tonnes as demand for ore grew from China. In 1970, Goa’s iron ore production was around 10 million tonnes annually.

The mining sector contributed roughly ₹6500 crore or 16.94% to the state’s GDP and employed 19,000 employees directly out of a labour force of around 600000 in 2010-11, a National Council for Applied Economic Research study found.