Staff Reporter
Panaji
Iron ore mining finally restarted in Goa after a gap of six years with Vedanta Ltd commencing operations at its Bicholim Mineral Block- I on Thursday.
The company, it is learnt, paid about `200 crore to the state government towards various installments of upfront fees, stamp duty and registration fees prior to signing of the mining production pact and the mining lease deed with the mines and geology directorate.
Government sources said that payment of royalty from the mine to the state exchequer will commence at the time of dispatch of ore from the lease area.
They said that besides the royalty, which starts at 15% (depending on the declared grade of ore), the state will earn by way of contributions to the Goa Iron Ore Permanent Fund, the District Mineral Fund, National Mineral Exploration Trust and the auction premium for the mineral block quoted at the time of bid, which is 63.5% of the average sale price of the ore.
The Bicholim mineral block is the first auctioned mine to become operational after receiving environment clearance from the Union ministry of environment, forest and climate change in January this year and the consent to operate from the Goa State Pollution Control Board on March 3.
It was put up for sale in the first round of auction of mineral blocks in November 2022, and is being developed by Vedanta at a capital cost of `250 crore.
The block has estimated reserves of 85 million tonne and annual iron ore production capacity of 3 million tonne. It is the biggest and one of the best in the state due to its high grade of ore: the block is spread over a mining lease area of 478.5 hectares.
The block will provide direct employment to 521 people, according to the environment management report submitted at the time of public hearing.
Vedanta in a press statement said that it is well prepared to initiate safe mining operations and will rely on modern and advanced technologies to operate the mines in a sustainable manner.
The company said the block, being an auction mine, will immensely benefit the state due to its revenue potential as well as generation of indirect employment, stimulating the business environment including small businesses, truckers, barge owners, and contractual workers from Goa among others.
Mining historically contributed up to 20% to the state gross domestic product.
The iron ore mining industry shut down for the second time on March 16, 2018, after a Supreme Court order. The industry closure affected the state economy badly.
In the last six years the state explored various options to restart the industry before deciding to auction mineral blocks as mandated by the Centre.