28 February 2016

Vedanta wins country's first gold mine auction in Chhattisgarh


London-listed Resources Inc bagged a in Chhattisgarh that was put up for auction by the state government.

The company quoted the highest price to get the Baghmara (Sonakhan) gold mine, which became country’s first mine carrying the yellow metal to be auctioned. The company would be granted the composite licence that includes both prospecting licence and cum-mining lease.

“Vedanta Resources Inc quoted the highest bid of 12.55% of the IBM price at Rs 74,712 per troy ounce (1 troy ounce = 31.10 gram) to win the gold mine,” Subodh Kumar Singh, secretary mines, told Business Standard. The auction would fetch Rs 80 crore to the state exchequer in addition to existing royalty, he added.

The Baghmara mine is spread across an area of 608 hectares in a densely forested pocket of the Balodabazar-Bhatapara district — about 130 km northeast of Raipur. Based on the exploration and available reports, the mine has an estimate reserve of 2,700 kg of gold metal. The bidding went on for nearly 13 hours Friday and concluded late in the night. Over 160 bids were submitted.

Singh said the attractive policies of the state government had resulted in large participation in the bid. The mine is the oldest explored gold deposit in Central India and has long been held as having a commercial potential, he said, adding that the development of the Baghmara gold mine will contribute towards India’s target to reduce gold import besides promoting gold, gems and jewelry business in the state.

Vedanta Resources, a global diversified metals and mining company, has added gold in its mineral portfolio by bagging the mine. The group produces oil, zinc, aluminium, copper, lead and silver. The company is also eyeing at the gold mines put for auction in the neighbouring Jharkhand state.

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