Vedanta Limited won first ever auction of an Indian gold mine

Mar 1, 2016 14:16 IST

Vedanta Limited on 27 February 2016 won the nation’s first-ever gold mining lease auctioned by the Chhattisgarh Government. The company acquired the Baghmara (Sonakhan) gold mine with its highest bid of 12.55 percent of Indian Bureau of Mining (IBM) price of 74712 rupees/ troy ounce.

Following the auction, Vedanta will get the composite licence that includes prospecting as well as cum-mining lease.

The auction is expected to yield 82 crore rupees to the state exchequer in addition to the royalty of 25 crore rupees.

The mine is situated in Balodabazaar-Bhatapara district of Chhattisgarh, 130 km north-east of the state capital Raipur. It is one of the oldest explored deposits of the precious metal in Central India.

An estimated reserve found during the initial prospecting for gold in the region, that spreads over 607 hectares, is 2700 kg.

The four companies that participated in the auction were Rungta Mines Ltd, Vedanta Limited, Krishna Global Minerals Ltd and Sainik Mining and Allied Services Ltd.

The state government had invited bids for granting of mining lease through the auction of one gold block and the four limestone blocks on 8 December 2015.

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