Team Herald
PANJIM: In the first ever e-auction of mining leases in Goa, the Vedanta Ltd has won the bid for Bicholim-Mulgao mining block that has got over 84 million tonnes of iron ore reserve available for extraction. The mining lease- before the State government could take over- was owned by Sesa iron ore, a Vedanta group of company. The government is hopeful that the actual iron ore extraction will commence post 2023 monsoon.
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The online bid for Bicholim-Mulgao mining block was opened on Wednesday morning at 63 per cent of the average sale price fixed by Indian Bureau of Mines (IBM). The e-auction was conducted through Metal Scrap Trading Corporation (MSTC).
The Vedanta bid the highest at 63.55 per cent revenue share. Total five companies had bid for the block. The other companies include JSW Group, Gujarat-based steel maker AMNS India, Jindal Steel and Power Limited (JSPL) and MSPL Ltd.
The mining block- comprising of five mining leases located at Mulgao, Sirigao, Lambgaon, Mayem, Bicholim- is spread across 485 hectares. The bidder however will now have to obtain fresh Environment Clearance (EC) for the lease apart from other permissions to operate the lease.
Addressing media persons post auction, the Chief Minister Pramod Sawant declared Vedanta as the successful bidder of the Bicholim mining block in the first phase of auctioning. “They were operating the block before and hence it will help in keeping the continuity of the work,” he said.
Sawant said the bidder will execute the lease for a period of 50 years.
“A new era has begun for the mining sector in Goa. The long pending issue of mining in Goa has come to a practical end,” he said.
Sawant said this is major step of the Goa government to ensure resumption and continuity of jobs for employees from the company. He said that bidder will have to give employment preference to local residents at all levels of operations.
Director Mines Suresh Shanbhogue said the first installment 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,” he said.
Shanbhogue said no mining lease will be executed on the expiry of the period of 3 (three) years from the date of letter of intent and the letter of intent will be invalidated leading to annulment of the entire auction process.
“The upper limit fixed for mining activities is three years. Since the lease had EC, it won’t be difficult for the bidder to get fresh EC. If he manages to get it within six months, then in all possibility mining should start in 2023 post monsoon,” he said.
The Sirigao-Mayem mining block will be auctioned on Thursday.
The iron ore mining industry in the State is shut since March 2018 after the Supreme Court quashed and set aside the renewals granted to 88 iron ore mining leases. Before that the mining activities were shut between September 2012 and January 2015.
The Supreme Court via an order in February 2018 directed the State to grant fresh mining leases strictly as per the provisions of the Mines and Minerals (Development and Regulation) Act, 1957.
