India: Goa Govt Announces Base Price for 22nd Iron Ore E-auction

Directorate of Mines & Geology (DMG), govt. of Goa has notified base price of iron ore lots for 22nd e-auctions which is to be held tomorrow (i.e. 22nd Aug’19). Total quantity put for auction is 5.341 MnT with base price ranging from INR 300- 500/MT.

Majority of the quantity put under auction is of low-grade with highest grade reaching Fe 60.89%. Out of the total offered quantity, 4.04 MnT is ROM ranging from Fe 27.6-60.89%, 1.013 MnT is fines having Fe content 18.6-60% and 0.279 MnT is lump ranging from Fe 38.94-58%.

Link to PDF of offered lots and base price for 22nd auction

Last iron ore e-auction from Goa was conducted on 05 May'17. So far, Goa DMG has managed to sell around 10.9 MnT iron ore out of 15.5 MnT iron ore identified via 21 e-auctions conducted so far since auctions started in the state from Feb’14 onwards.

Towards 15th July’19, the Honorable Chief Minister Pramod Sawant had declared the beginning of e-auction of material lying at jetties and plots. Also, the honorable CM added that the mining of dumps would be permitted within six months.

In 2012, the apex court had declared all the mining held post 2007 as illegal and said all the ore lying at jetties and plots (15 MnT) is state’s property. The Supreme Court of India in early Feb'18 said that the 88 iron ore mine leases that were granted second renewal in violation are directed to stop all mining operations with effect from 16 Mar’18 until fresh mining leases are granted and fresh environmental clearances are granted. Thus the 2nd renewal granted to the mines by state of Goa is liable to be set aside and stands quashed.

The mines were permitted to export iron ore mined previously to the ban imposition, on which royalty was paid, and material lying at jetties, with the halt in new mining operations. Out of the total 88 mining leases, few were amalgamated owing to common environmental clearances, reducing to 37 working and 31 non working mines.