PANJIM: Just four million tonnes of fresh iron ore was extracted in the State during the ongoing mining season (till date), ending on May 31. The government now intends to lower the earnest money deposit from existing Rs 25 lakh so as to attract more value to the ore being e-auctioned.
Directorate of Mines and Geology (DMG) on Monday met mine owners expressing concern over low iron ore production and to work out measures to increase revenue through the balance seven million tonnes of ore awaiting e-auction.
During the meeting it was informed that with 17 mining leases commencing operations, only four million tonnes of fresh ore extractions have been reported, with royalty collection of Rs 30 crore. By March end, the extraction may touch five million tonnes.
Mine owner Harish Melvani said the meeting discussed measures to attract more value to the ore proposed for e-auction. “The meeting resolved that the government should lower the earnest money for mineral based industries that after purchase of ore would process it and improve its grade. It was also decided to exempt small time industries from payment of earnest amount,” he said.
Melvani was of the opinion that the government should undertake an exercise to segregate balanced ore into lumps and fines, so that interested buyers can go in for ore of their choice. “This move will help us fix different base price and get good value,” he said.
The date of the final phase of e-auction, where nearly 7.76 million tonnes of stacked iron ore is to be e-auctioned, is yet to be announced. In the last two years, DMG managed to e-auction 7.24 million tonnes of ore, of which more than 60 per cent remains at the sites.
