PANJIM: In a step towards reviving the mining industry, the State government has put up four mining blocks- three in Bicholim and one in Sanguem, having approximately 135 million tons of iron ore resources, for e-auction. However, it will take at least three years for the iron ore mining activities to commence as none of the mining blocks have requisite permissions including valid Environment Clearance to start operations immediately.
The Directorate of Mines and Geology (DMG), through the Metal Scrap Trading Corporation (MSTC), has invited tenders to e-auction four mining blocks- Mulgao, Sirigao-Mayem and Monte-de-Sirigao, all in Bicholim taluka and Kalay mine in Sanguem. The last date for the purchase of the tender document is November 15, while interested bidders can apply until November 21.
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These mines were previously operated by mining firms like M/s Narvekar, M/s Rajaram Bandekar, M/s Chowgule & Co Pvt Ltd and Sesa Mining Corporation.
This is the first time that the state government is auctioning mining leases to carry out mining activities in the state. Mining in the State was halted in March 2018 after the Supreme Court set aside the second renewal granted to 88 leases.
“These four mining blocks are part of those 88 leases. The successful bidder will have to obtain all the requisite permissions to start operations,” Director, Mines, Suresh Shanbhogue told Herald, adding that the tender document specifies that a successful bidder will have to first obtain forest, wildlife, and environmental clearances afresh.
The DMG has said that the successful bidder will have to give employment preference to local residents at all levels of operations, subject to such residents being available, qualified and suitable for such job.
The Mulgao mine at Bicholim has the largest area of around 347.56 ha, having approximately 84.923 million tons of ore. This mine was previously owned by Sesa Mining Corporation.
Similarly, in Sirigao too, around 23.58 million tons of ore are available across an area of 64.99 ha. M/s Chowgule & Co Pvt was its erstwhile owner.
The Monte-de-Sirigao mine has 9.15 million tons of ore across a mineralised area of 29.80 ha. The mine used to be operated by the Rajaram Bandekar firm.
Sanguem’s Kalay mine, earlier owned by M/s NS Narvekar, has 16.731 million tons of ore in the unexplored lease area of 75 ha. Here, 3.93 MT of ore is blocked since the area falls within one km of an eco-sensitive zone.
As per the tender document, the names of successful bidders would be declared from December 13 to December 21. Following this, the first instalment of the bid price will have to be paid to the government within 15 days, after which the Letter of Intent will be issued.
“This letter of intent is valid for a period of 3 (three) years from the date of its issuance, within which time all the conditions must be fulfilled and the Mining Lease deed must be executed between the bidder and the Government of Goa,” DMG said.
“No Mining Lease shall be executed on the expiry of the period of 3 (three) years from the date of the letter of intent and the letter of intent shall be invalidated leading to the annulment of the entire auction process,” it added further.
Potential bidders will be eligible to visit the Mineral Block with prior notice to the State Government.
As per the tender, in the first year of mining commencement, there is no target set by the government for annual production and dispatch from each mine, however in the second year it is 10 per cent of the total ore, 30 per cent in third year and 50 per cent in the fourth year. From the fifth year onwards, the minimum production should be 80 per cent.
