First batch of 8 iron ore mining leases to be auctioned this month

Notice Inviting Tender likely this month; but moot question is won’t these leases need fresh EC clearances; how can auctioning take place without the EC process?

PANJIM: The State government is likely to issue a Notice Inviting Tender (NIT) to auction the first batch of iron ore mining leases in the State this month, with the tender document being already prepared by the Directorate of Mines and Geology (DMG).

The Mineral Exploration Corporation Ltd (MECL) in its final report submitted to the State government, has zeroed upon eight mining leases, located in Bicholim and Sattari talukas, that can be taken up for auction in the first phase. These mines, having approximately 30 million tonnes of ore reserves, were lying non-operational for decades, due for various reasons.

However, the question that remains is won’t these leases need fresh EC clearances? How can an auction take place without the EC process?

On August 25, environmental NGO Goa Foundation (GF) charged that the State government was not maintaining transparency in the conduct of iron ore mining operations or resumption of its activities. The NGO questioned the Directorate of Mines and Geology (DMG) as to how the mining leases will be granted in the absence of a policy or a white paper on the subject. 

In a letter addressed to the Director of Mines, GF has countered State government claims of transfer of environment clearances (ECs), stating that currently no mining leases and ECs exist and that as per the Supreme Court order, the State will have to go in for fresh leases and ECs.

Meanwhile, government sources confirmed that the DMG has already finalised the tender document and NIT is expected to be issued shortly this month. “The NIT should have been out last month but due to some technicalities, it could not be. But now the DMG has worked out everything,” the sources said.

“The identified leases by the MECL are not part of those 88 leases, which were under litigation. These are leases, whose first renewals were not done and some of those which failed to operate due to low demand for ore in the international market during that period,” the sources added.

Earlier this week, the State government formed a joint working group (JWG) under Chief Secretary Puneet Goel to resolve administrative and technical issues and ensure inter-departmental coordination for smooth conduct of the auction process.

The JWG will hold meetings once every two months and after each meeting, will submit its report to the Union Ministry of Mines.

The Principal Chief Conservator of Forests, officials from the Mines Department, and two senior officials from the Union Ministry of Mines are part of the JWG. One representative from the MECL is also on the committee.

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