Kasaragod to auction bauxite mining rights, eyeing $60 million in revenue

Bauxite mining rights across two blocks in Kasaragod are set to be auctioned soon. The State government is finalising the auction process for bauxite deposits in the Narala block, covering an area of 1.5 square kilometres in Mulleria and a 2.8 square kilometres area in the Ukkinadka block located in the villages of Badiyadukka and Enmakaje in Manjeswaram taluk.

Both government agencies and private entities will be eligible to bid for the mining rights. Additionally, the State government is actively considering a proposal to explore minerals from the platinum group.

The decision to auction bauxite mining rights was taken after studies conducted by the Geological Survey of India (GSI) confirmed the presence of commercially exploitable mineral deposits. Bauxite, a naturally occurring resource essential for industries such as aluminium and cement manufacturing, was identified in significant quantities.

The G2 level of exploration, involving detailed mapping and sampling to identify economically viable zones, has been completed in the Narala block. Preliminary estimates suggest that 0.2113 million tonnes of high-grade bauxite and 5.1417 million tonnes of aluminous laterite are extractable from the block. The potential yield from the Ukkinadka block is expected to be revealed next month upon completion of the G2 level studies by the GSI. Officials indicate that the region holds cement-grade bauxite, which may serve the requirements of cement factories.

The Narala block lies on the fringe of the Kadakam Reserve Forest, an acacia plantation under the Forest Department. Meanwhile, the land in the Ukkinadka block is a mix of private and government ownership, according to officials.

The State government expects to generate approximately INR 5,000 crore (US$60 million) in revenue from the auction of mining rights. A high-level committee, led by the Principal Secretary of the Industries Department, will soon be established to oversee the bidding process. Additionally, the State may engage a transactional advisor to facilitate the auction.