Rogue traders cannot bid for Goa iron ore

Iron ore traders interested in bidding for Supreme Court-monitored e-auction of 15 million tonnes of ore in Goa will have to first come clean that they are not involved in illegal mining, a government notice said.

The state government's department for mines and geology, the agency carrying out the e-auction, in its notice inviting bidding enrollment applications from iron ore traders, has also said that ore would be sold in four lots beginning with 10,000 tonnes.

"The application should also have a declaration stating that all the information furnished in application is true and that applicant either directly or indirectly was not involved in any illegal mining activity in the state of Goa," the notice said.

After banning all iron ore mining and export activity for more than a year, the Supreme Court last year allowed e-auctioning of nearly 15 million tonnes of already extracted iron ore.

However, the revenues earned from the sale would not be handed over to the mining companies, but would be held in escrow, until the origin and legality of the ore is established.

The state government will be allowed to pocket the tax and royalty revenue earned from the e-auction.

The auction is expected to take place in the first or second week of February.