SHWETA KAMAT
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PANJIM: Five iron ore mining blocks, having approximately 25 million tonnes of ore reserves and lying non-operational for decades will be put up for auction after the new government takes over in March. Mineral Exploration Corporation Ltd (MECL) is in an advanced stage of submitting the Geological Survey Report (GSR).
With the election model code of conduct coming into force in view of the February 14 elections, the Pramod Sawant government’s plan to auction iron ore leases has been derailed. Though, Goa Mineral Development Corporation was set up in September last year, in the absence of any rules, it failed to commence operations.
Highly placed sources confirmed that MECL in its preliminary report has identified five blocks, with approximately 25 million tonnes ore reserves, that can be put up for auction. “All these blocks are in North Goa and have been non-operational for years due to various reasons. These are the mining leases, which are not in any litigation, means not part of those 88 leases,” sources said.
“MECL was undertaking a geological survey of those mines, which are not in litigation; but of leases that were granted but no extraction ever or limited extraction had taken place,” sources said.
MECL, which had commenced site inspections of 77 leases in October, to quantify the ore lying, is in an advance stage of submitting the final GSR, which would be the base for identifying the number of leases to be put up for auction.
Once, MECL finalises its report and the blocks to be auctioned, the leases will be transferred to the Mineral Corporation, with government approval, for auction.
Sources further explained that SBI CAP will be providing a transaction advisory service to the State government for the auction and accordingly, they would prepare the tender document for the auction.
“Nothing can happen now, everything once the new government takes charge but we want to follow all the procedures. SBI CAP will prepare the tender document, invite expressions of interest and other formalities related to the auction process,” sources said.
