Jharkhand: Re-auction Process Set to Begin
Ranchi: The Jharkhand government has cancelled the allocations of five mineral blocks—two gold, one iron ore and two graphite blocks—after production failed to begin within the stipulated period. The Mines Department has directed officials to initiate the process for their re-auction.
The blocks had earlier been auctioned through the MSTC online platform, with the latest cancellation notification reportedly issued by Mines Department Joint Secretary Ziaul Ansari.
The government has cited failure to commence mining within the prescribed timeframe as the main reason for the cancellations. However, the affected companies have reportedly argued that delays resulted from pending forest clearances, NOCs and other statutory approvals, rather than their own inaction.
Among the cancelled allocations is the Parasi Gold Block in Tamar, Ranchi, auctioned to Rungta Mines in November 2017. Production was expected to begin by January 2021, but mining did not start. Rungta Mines reportedly attributed the delay to pending forest clearance and had sought extensions concerning the lease and block validity.
The Pahardih Gold Block in West Singhbhum, spread over about 272.651 hectares, was auctioned to Maithan Ispat in October 2016. It also failed to become operational, with forest clearance reportedly remaining a key hurdle.
The Bhangaon Iron Ore Block in Noamundi, falling under the Saranda Forest Division, was allotted to South-West Mining Limited in 2018. Mining could not begin amid pending forest clearance and other required NOCs.
The two graphite blocks in Palamu—Dulsulma and Lesliganj—were also included in the cancellation. Both had been allotted to Team Geo Resources Pvt. Ltd.
Five blocks slated for re-auction:
| Mineral Block | Location | Allotted Company | Auction Date |
|---|---|---|---|
| Pahardih Gold | West Singhbhum | Maithan Ispat Ltd. | 26 Oct 2016 |
| Parasi Gold & Associated Minerals | Tamar, Ranchi | Rungta Mines Ltd. | 1 Nov 2017 |
| Bhangaon Iron Ore | West Singhbhum | South-West Mining Ltd. | 28 Jun 2018 |
| Dulsulma Graphite | Palamu | Team Geo Resources Pvt. Ltd. | 1 Mar 2019 |
| Lesliganj Graphite | Palamu | Team Geo Resources Pvt. Ltd. | 1 Aug 2018 |
The move follows a June 2026 review, during which the Chief Minister directed that long-pending, inactive mineral blocks be reviewed for cancellation and re-auction, along with reassessment of potential state revenue.
Meanwhile, some of the affected companies are reportedly considering approaching the Mining Tribunal, potentially turning the lease cancellations into a legal dispute.
