Posted on 19 Mar 2025
Indian iron ore-rich state, Goa, is set to witness the full-scale resumption of iron ore mining activities within the next six months, as announced by the Union coal and mines minister G Kishan Reddy, notes Kallanish.
This development follows the auctioning of 12 mineral blocks, with operations poised to commence on nine of them shortly.
Goa possesses substantial iron ore reserves, estimated at approximately 1,200 million tonnes, which are projected to support mining activities for the next 60 years.
However, in 2018, the Supreme Court of India cancelled 88 mining leases due to widespread illegalities and irregularities in the sector. This decision led to a halt in mining operations, significantly impacting the state's economy and employment.
Subsequently, the state government initiated the process of auctioning new mining leases to ensure transparency and compliance with legal norms. However, these auctions faced challenges, including technical glitches during the bidding process, disputes among participants, and delays in finalising the auction outcomes.
India has huge reserves of iron ore and produced around 280mt of iron ore fines in 2024. Before the 2018 ban, Goa had significant contributions towards the total iron ore production along with other states including Jharkhand, Chhattisgarh, Odisha, and Karnataka.
The iron ore found in Goa is predominantly low-grade, with an iron content of less than 56% Fe. It is mostly haematitic in nature and is primarily exported for blending purposes, as it has limited domestic demand due to the availability of higher-grade ores in other parts of India.
Source:Kallanish
