After two back to back failures in leasing out the lucrative gold mine of Parasi (Central Block), the Department of Mines and Geology is soon to go into a huddle to find out ways.
It is learnt that lack of adequate land for dumping the huge overburden generated after mining is coming in the way of companies showing not much interest in the rare mine with gold reserve in the State.
Highly placed sources have confided to The Pioneer that the Directorate of Mines and Geology is in touch with its advisors—Mecon and MECl—in this regard. “We have come across an issue which is related to a small area designated for dumping the soil coming out of mining process. As per the plan, 75 acres of land was on offer for dumping the waste but the companies participating in the pre-bid meetings have sought for more than 150 acres,” said an official of the Department.
Notably, two such meetings with interested firms and the Directorate officials have failed to yield any result which has left the official to convene another pre-bid consultation as per the set norms. Nevertheless, looking at just two firms showing some interest in buying the gold ore mine and that too with such a rider, the next meeting is not expected to break the ice.
When contacted, Mines Director SI Minj while confirming the developments stated that the technical issue was there from the beginning. “Gold ore is very low in content and the mining generates tremendous amount of residue in the process. In one tonne of gold ore chances of getting one gram of gold is there. Citing this, only the firms bidding for the mine are demanding to expand the dumping area than the offered,” said the Director.
Though one more chance is there before going back to drawing table, it is learnt that the two advisors or consultants designated for Parasi-C mine would be approached afresh.
“It is a set procedure. When we exhaust the last chance, the consultants would come into picture. Mecon and Mineral Exploration Corporation limited (MECl) would suggest us on that front and then only the Government can go ahead. The Department or Directorate cannot decide on its own since lots of counter questions get involved,” said a senior official. Mining major Adani Mining ltd had already pulled back its claims on similar issues besides, others related to law and order and land acquisition.
MECl estimated a total of 7.467 million tonnes Au (gold) reserves with an average thickness of 9.27m at 0.5 g/t Au cutoff and 3.714 million tonnes Au reserves with 7.04 average thickness at 1.0 g/t Au cut off. The ore body is found to be quite wide even up to 200.00 m vertical depth, open cast proposition can bring up the Parasi (Central Block) Gold Deposit into a production mine in future.
The gold mine carries good prospects for the State in which the Centre is also taking deep interest. The Mines Ministry is said to be closely monitoring the developments taking place in making the mine operational. The interest shown by the Centre is likely to expedite the re-consultation process.