Vedanta wins first ever auction of Indian gold mine in Chhattisgarh

Officials informed that of over 160 bids received by the state government, the company offered the highest, in a process that lasted over twelve hours on February 26.

In the first ever auction of a gold mine in India, Vedanta Resources has won the right to mine for gold in the Baghmara mines in Chhattisgarh, put up for auction by the state government.

Officials informed that of over 160 bids received by the state government, the company offered the highest, in a process that lasted over twelve hours on February 26.

A senior state government official said, “Vedanta Resources quoted the highest bid of 12.55 per cent of the Indian Bureau of Mining (IBM) price at Rs 74,712 per troy ounce to win the auction. This will bring in over Rs 80 crore to the state exchequer in addition to existing royalty,” the officer said.

The mine itself is spread across 608 hectares in Balodabazar district. Officers said that the mine has an estimate reserve of 2,700 kg of gold metal.

“Through its policies, the state government has brought about ease of doing business, which is why we saw such an enthusiastic response to the auction. This will definitely help towards the goal of reducing gold imports,” said a senior state government official.

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