Shoma Patnaik
Panaji: The state government has signed a mining lease agreement for the Sirigao-Mayem mineral block II of Salgaonkar Shipping Company Pvt Ltd, with iron ore production at the mine expected to commence from the next month.
Government sources on Thursday said that post signing of the lease agreement, the company only requires permission from the directorate general of mines safety (DGMS) to start mining operations.
“The approval from DGMS is likely to come in another 15 days. It will be the third mineral block in the state to go into production out of the 12 blocks sold so far in three rounds of auctions,” said the source.
The Sirgao-Mayem block was auctioned in December 2022 in phase I of the bidding process initiated by the government to restart the local mining industry.
The block covers a total area of 171.2 hectares with an estimated iron ore reserve of 23.6 million tonnes and an average iron ore grade of Fe 56.5%. The block’s iron ore reserve value is estimated to be around Rs 7,500 crore.
Environment clearance (EC) for the mineral block is for a production capacity of one million tonne per annum (MTPA). As per the EC, the mineable reserve of the block is 14.54 million tonnes, with life of the mine expected to be 15 years.
The block will provide direct employment to around 24 individuals and indirect employment to 108 persons, according to the information revealed during the public hearing.
The government is expediting the restart of mining industry by facilitating clearances and approvals. The revenue target from the state mining sector is set at Rs 500 crore in 2025-26, which will be generated from upfront fees received at the time of auction and signing of the lease agreements as well as royalty income.
The government is also looking at revenue from the auction of 30 million tonnes of iron ore dumps this year and gearing for the fourth round of auction of mineral blocks.
