The first auction of an Indian gold mine, the Baghmara (Sonakhan) gold block, was completed with Vedanta Resources bagging the highest bid. The mine is located in the State of Chhattisgarh across 6.08 sq.km. The block was placed on auction as composite licence (Prospecting License cum Mining Lease).
Vedanta Resources participated in the forward auction on February 26. It was technically qualified through e-auction, as per reports.
Out of the 160 bids received and after about 13 hours of bidding, the company bagged the mine. It had bid at 12.55 percent of the IBM price at Rs 74,712 per troy ounce (1 troy ounce equates to 31.10 gram), as per reports.
The company is now required to submit a performance bank guarantee of Rs. 1.60 crores along with investment in exploration. The mine carries an estimated gold reserve of 2,700 kgs, reports add.