TERI flags DPR of mining firms, seeks response

Panaji: A month after the scheduled auction of 10 low-grade iron ore dumps was postponed by state govt, the energy and resources institute (TERI) has raised queries on the detailed project report (DPR) submitted by the mining companies.The directorate of mines and geology (DMG) had submitted the DPRs to TERI for scrutiny. DMG director Narayan Gad said, “TERI made some observations on the DPR submitted by bidders, and the DMG forwarded those queries to bidders for clarification. They have to submit their reply by mid-Feb.”Govt put up 22 million tonnes of low-grade iron ore through an e-auction. A total of 44 tender documents were purchased by mining companies for participation in the auction.State govt expects to generate upfront revenue of around Rs 150 crore from the auction. Once the dump is handled, companies will pay royalty and premium to state govt, Gad said.Govt fixed a reserve price of 22% for the e-auction of low-grade iron ore dumps in the state. For instance, if the Indian Bureau of Mines price is Rs 100 per tonne for low-grade iron ore and mining companies purchase the ore in the auction at 22% reserve price, companies must pay Rs 22 per tonne to govt.

After completing the first day of e-auctioning last year, the DMG cancelled the remaining three phases of auctions of dumps that were scheduled for Jan 31 and Feb 3 and 4, 2025, due to a “technical issue”. In July, it annulled the process as it decided to change the procedure for the auctioning of low-grade iron ore.The Dump Handling Policy, 2023, paved the way to deal with the 700 million tonnes of low-grade iron ore lying inside and outside mining leases across Goa, and to export 25 million tonnes per annum.