As Goa’s mining industry reopens after a decade-long hiatus, a careful approach to environmental responsibility is essential for its future success
Mining in Goa came to a halt in 2012 following a Supreme Court order, which deemed the state’s mining operations illegal due to irregularities in leases and environmental violations. This suspension resulted in a significant blow to Goa’s economy, especially its mining sector, which had long been a key contributor to the state’s revenue and employment. After years of legal and regulatory challenges, mining activities are now being gradually resumed, with new auctioned leases and updated policies aimed at revitalising the industry, while ensuring compliance with environmental standards. However, balancing economic growth with environmental sustainability remains a critical challenge.
Fomento Resources commences mining operations at Adwalpale-Thivim Iron Ore Block
In a positive development for Goa’s mining industry, Fomento Resources has officially begun operations at the Adwalpale-Thivim Mineral Block V, marking it as the second iron ore lease to become operational following the recent auction process. The company received environmental clearance (EC) in August 2024 and formalized the lease deed with the state government in November.
According to Narayan Gad, Director of Mines and Geology (DMG), mining operations commenced in the first week of December. The Adwalpale-Thivim block has an estimated annual production capacity of 300,000 tonnes of iron ore. Gad further stated that the government is set to sign lease agreements for two additional mineral blocks-Sirigao-Mayem Block II and Monte de Sirigao Block III-both of which have received environmental clearance. These blocks are currently awaiting consent to operate from Goa State Pollution Control Board (GSPCB).
Meanwhile, Vedanta Ltd.’s Bicholim Mineral Block I, which was the first to resume mining operations in the state, is already contributing to the state’s revenue through royalty payments.
For the fiscal year 2024-25, the state government anticipates a total royalty collection of `20 crore from the mining sector. The overall projected revenue from mining activities, including royalties, lease rents, auction premiums, and other related fees, is `513 crore, a significant increase from `80.6 crore in the previous year.
Fomento Resources, which was previously an owner of the Adwalpale-Thivim lease, won the auction for the block with a successful bid of 58.85%. The block spans 36.2 hectares and holds estimated reserves of 3.8 million tonnes of iron ore.
To date, a total of eleven mineral blocks have been e-auctioned in Goa across three bidding phases. In the latest Phase III auction, Blocks X and XII were successfully sold to JSW Steel Ltd and Agravanshi Pvt Ltd, respectively, while the auction of Block XI was deferred following a legal challenge by Vedanta Ltd before the High Court of Bombay at Goa.
Chowgule receives approval for dump ore mining under Goa’s Revised Policy
Chowgule and Company has received the consent to operate (CTO) from Goa State Pollution Control Board (GSPCB) to begin mining operations on mineral dumps, marking a significant step in the state government’s implementation of its Dump Handling Policy. The company is the first to be granted permission by Directorate of Mines and Geology (DMG) to handle dumps located outside lease areas, with approval to lift up to 500,000 tonnes of dump ore from the Sirigao region.
The consent is subject to several conditions, including the installation of two ambient air quality monitoring stations in the core and buffer zones, the implementation of air pollution mitigation measures, and ground water monitoring in the Mayem and Sirigao areas. Additionally, Chowgule is required to cover the waste dump slopes with laterite and biodegradable geo-textile mats to prevent soil erosion.
In conjunction with this approval, the GSPCB also granted CTOs to three other iron ore mining leases during its 160th meeting: Fomento Resources’ Adwalpale-Thivim Mineral Block V, Salgaocar Shipping Co.’s Sirigao-Mayem Mineral Block II, and Rajaram Bandekar’s Monte de Sirigao Mineral Block III. These blocks had previously secured environmental clearances (EC) from the State Expert Appraisal Committee (SEIAA).
The Goa government revised its Dump Handling Policy in November 2023, allowing for the e-auction of ore lying on private lands. An estimated 30 to 40 dumps have been identified, and the government expects to generate `400-500 crore in revenue from the sale of these ore dumps. Under the revised policy, landowners will receive lease payments once the ore is successfully e-auctioned, with the exact fee to be determined based on the quality of the ore.
The DMG has received applications from 20 companies across the state seeking permission to undertake dump mining operations, signaling strong industry interest in the initiative.
GMOEA seeks resolution to transportation deadlock affecting Vedanta’s Bicholim mine
As mining leases in Goa resume production, Goa Mineral Ore Exporters’ Association (GMOEA) has called on the state government to urgently address the ongoing transportation impasse affecting ore movement, particularly at Vedanta’s Bicholim mine. The GMOEA, which represents mining export companies in the state, emphasized that the disruption is harming operators and, by extension, the state’s revenue.
The association highlighted that the stoppage of ore transport from Vedanta’s Bicholim mine, which relies on traditional or dedicated routes, is unjust to operators and is a situation where both the government and the lessee share responsibility for resolution without imposing additional costs on the operator. The GMOEA claims that the suspension of transportation is costing the state around `2 crore daily in lost revenue from royalties and other dues.
GMOEA Secretary Glenn Kalavampara expressed concern that despite the company having secured all necessary permits, the transportation halt is damaging not only the mining operator but also the broader state economy. “For the past two weeks, Vedanta Ltd has faced transportation disruptions due to unreasonable demands from certain groups, resulting in daily losses of nearly `2 crore. Moreover, even temporary route requests remain unresolved. This situation runs counter to the principles of ease of doing business,” he said.
GMOEA called for continued dialogue between village communities and the company to find an amicable resolution and urged for practical, interim solutions to prevent further delays. Kalavampara also stressed the importance of avoiding situations where the law is circumvented.
At the heart of the issue is a demand from villagers who are preventing Vedanta from transporting ore along the Piligao-Sarmanas public road unless the company reinstates retrenched workers. GMOEA hopes that both the concerns of the local communities and the operational needs of the company can be addressed swiftly and effectively.
As mining resumes in Goa, it is crucial that operations are carried out with a strong emphasis on environmental sustainability. Strict adherence to environmental regulations, responsible waste management, and continuous monitoring are necessary to ensure that the industry does not repeat past mistakes.
The government, mining companies, and local communities must collaborate to create a mining framework that supports economic growth while safeguarding Goa’s rich natural resources and biodiversity for future generations. Only by pragmatic integration of environmental concerns with industrial progress can Goa’s mining sector thrive responsibly.
