Metals & Mining News

Gold and diamond mines set to be auctioned in November

India is looking to auction its third diamond, three gold mines and one bauxite mine located in Chhattisgarh next month, said people aware of the development. “Auction of the Basna II Block in Chhattisgarh would be held on November 10,” said a person privy to the development

The first auction of a diamond bearing mine took place on October 2016, while the second concluded in December 2019. Both these mines were in Madhya Pradesh.

Besides, the Tumrisur-Garda II, Rangmatiya, and Barjor gold bearing blocks, also in Chattisgarh, will also be bid out on November 10.

Falling Output

Production of diamonds in India stood at 388 carats in financial year 2022-23, up from 266 carats a year ago.

Despite the rise, India’s diamond output has come down significantly from 13,917 carats in fiscal 2020-21. This fall can be attributed to curbs on output from NMDC’s (the only organised producer of diamond in India) Majhgawan mine at Panna, Madhya Pradesh. The Supreme Court in November 2022 allowed NMDC to resume diamond mining in Panna and the company in the process of starting production once against from the mine, company officials said. These bids also come at a time the global diamond industry is facing a supply glut and producers are being asked to scale down production.India’s gold ore output during fiscal 2022-23 stood at 6.34 lakh tonnes, up from 4.91 lakh tonnes in the preceding year. Bidding for these mines comes at a time gold prices are firming up with price touching ₹62,515 per 10 gram for 24 karat gold on Friday, nearing the all-time high of ₹62,950 per 10 gram attained in May this year.

Under the present regulatory regime, minerals are auctioned by the state government. Revenue proceeds from the same are also used in the states where the mines are located.

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