Bombay High Court Upholds Goa’s Iron Ore Dump Policy, Says Auction Rules Don’t Apply to Mining Dumps

The Bombay High Court has upheld Goa’s 2023 Iron Ore Dump Handling Policy, ruling that mining dumps cannot be treated the same as mining leases under Section 10B of the Mines and Minerals (Development and Regulation) Act, 1957. The Goa Bench clarified that the mandatory auction requirement applicable to fresh mining leases does not extend to already extracted mineral dumps lying on private land.

A Division Bench comprising Justice Suman Shyam and Justice Amit S. Jamsandekar observed that iron ore dumps are a by-product of previously approved mining operations and not newly discovered mineral resources requiring fresh lease grants. The Court noted that royalty had already been paid on the extracted ore and therefore directing a fresh auction process “does not hold to reason.”

The case arose from a Public Interest Litigation filed by Goa Foundation challenging Clause 2(2) of the Goa Iron Ore Dump Policy, 2023. The petitioner argued that dump materials worth nearly ₹10,000 crore should be confiscated and auctioned by the State because the original mining leases had expired. It further contended that handling dumps without granting a fresh mining lease violated Section 10B of the MMDR Act.

Rejecting these arguments, the High Court held that the Supreme Court had already permitted the State to proceed with dump handling in accordance with recommendations made by an Expert Committee after the landmark Goa Foundation mining cases. The Bench emphasised that while auctions may often be preferable for allocating natural resources, they are not a universal constitutional requirement.

The Court further ruled that the policy adopted by the State was transparent, reasonable, and adequately protected public revenue through royalty and conversion fee mechanisms. Consequently, the PIL was dismissed, allowing the State to continue implementing the 2023 policy governing iron ore dump handling in Goa.