Saturday, February 27th, 2016

Vedanta wins First Auction of Gold Mine

Narada Desk | February 27, 2016 9:56 pm Print

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Opening a new chapter in the domestic gold mining sector, Vedanta Private Limited today won the first ever auction of India’s gold mine. The firm quoted the highest bid of 2.55 per cent of IBM (Indian Bureau of Mining) price of Rupees 74,712/ troy ounce (1 troy ounce = 31.10 gram) against three other bidders.

The auction has been done for the mine of Baghmara at Sonakhan in Balodabazaar- Bhatapara district of Chattisgarh. It is the first gold mine auctioned for grant of composite license (prospecting license-cum-mining lease) since enforcement of new amendment in Mines and Minerals (Development and Regulation) Act 2015.

Expressing pleasure over the move, Chhattisgarh chief minister and minister for mining Dr Raman Singh told TOI, “Chhattisgarh is blessed with mineral resources and mines, while it has been known for iron-ore, coal, bauxite and limestone, commencement of gold mine would be a huge attraction for industries and for revenue generation which would earn the state with new kind of development and name. The ease of business here is the uniqueness we offer that attracts industries to Chhattisgarh.”

Baghmara mine has an area of 608 ha located in eastern part of Balodabazar-Bhatapara district, and is about 130 km northeast of Raipur. The gold deposit was previously explored between 1981 and 1990 by the directorate of Geology and Mining, of erstwhile state of Madhya Pradesh.

The mine, with a reserve of 2700 kg, is expected to earn more than Rupees 81.40 crores to Chhattisgarh in addition to existing royalty of Rs 24.70 crores

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