PANAJI
Goa government’s efforts to resume mining have finally borne fruits with Vedanta winning the first bid for Bicholim (Mulgao) mining block with the State optimistic that extraction of iron ore will commence after the next monsoon.
“Mining operations came to a standstill 10 years back and we made every attempt to ensure mining dependents do not struggle for their survival. Our efforts were continuous to resume mining activities because Goa is dependent on the revenue generated through this, although, we faced a series of criticism,” Chief Minister Pramod Sawant said as he addressed a press conference at his official residence on Wednesday evening.
With the Supreme Court’s green signal to handle ore dumps, CM said it has paved the way for auctioning following which full-fledged mining activity can begin within the legal framework.
“A new era has begun for the mining sector in Goa... Vedanta bid highest at 63.55 percent revenue share. A total of five companies bidded for the block,” he informed adding that online bid for the Bicholim block opened on Wednesday morning at 63 percent of the average sale price fixed by the Indian Bureau of Mines (IBM) whereas the e-auction was held through Metal Scrap Trading Corporation (MSTC). Besides Vedanta, JSW Group, AMNS India, Jindal Steel and Power Limited (JSPL), and MSPL Ltd had also bid for the block.
CM Sawant further claimed that the winning bidder had earlier operated the block and as such, this experience will count in keeping the continuity of the work. “The bidder will execute the lease for 50 years. This is a major step to ensure the resumption and continuity of jobs for employees from the company. The bidder will have to give job preference to locals. There was a provision during the bidding process...” he said while replying to media questions.
Director of Mines & Geology Department Suresh Shanbhogue explained that the first installment of the bid price will have to be paid to the government within a fortnight following which the Letter of Intent will be issued, which is valid for three years from the date of its issuance. It is also the law that within this period, all conditions must be complied with and that the Mining Lease deed executed between the bidder and the Goa government.
“The lease will have to apply for fresh Environmental Clearance though it won’t be difficult because it already had EC. If the company manages to get the clearance within six months, mining activity is likely to start after the next monsoon,” the director said.
He further added the resource value of four mining blocks at Mulgao, Sirigao-Mayem, Monte-de-Sirigao and Kalay, which have 135 million tonnes approx. of iron ore reserve, is estimated at Rs 43,000 crore. “As per the tender document, the successful bidder of each mine will have to pay an advance premium of 0.05 percent of the total 43,000 crore, which comes to around Rs 215 crore, and the successful bidder will have to pay 20 percent of this amount immediately once it is declared as the preferred bidder. The payment has to be made within 15 days,” he said, adding that another seven mining blocks will be up for auction shortly.
