India: 7 more iron ore leases to be auctioned in Goa soon

The state government of Goa is likely to auction another seven leases – all located in its southern mining belt, sources informed SteelMint. 

Of the seven leases, five are Chowgule’s old mines clubbed into a group of two larger blocks of 121 and 166 hectares each, while others which were earlier operated by Fomento, Sesa, Pandurang Timblo and Timblo Private Ltd. 

However, SteelMint could not get a confirmation from the state Department of Mines & Geology was received till the time of publishing this report.

With the auction of these blocks — in the talukas of Sanvordem, Sanguem, Curchorem, and Quepem – expected to begin before the end of this month, the state government hopes to reactivate mining-related activities in the southern parts of the state, as it hopes to have done in the north with the auction of eight (and one in the south) mineral blocks in two tranches.

Historically, mining in south Goa is more challenging than in the north because of two factors, One is that the iron ore grade is comparatively inferior with an average Fe content of less than Fe 55%. Secondly, transporting of the same is more challenging.  Consequently, the region contributed less to the state’s total iron ore output.

The final premiums in the auctions held so far ranged from 58% to 145.8%, which, some believe, is high for a state like Goa which has been an exporter of iron ore of grades below the threshold of the export duty.

The state has only two  downstream plants in Goa. One is Vedanta’s pig iron facility, and the second is Mandovi River Pellets acquired by Jagannath Steels & Power and Thriveni Earthmovers last year.