Vedanta, a unit of Vedanta Resources, has bagged the Baghmara gold mine in the Indian state of Chhattisgarh, as the country opens up the sector to private mining companies.
Reuters quoted Chhattisgarh Directorate of Geology and Mining head Reena Kangale saying that the company has beat three other bidders in the auction.
Following the auction, Vedanta will get the composite licence that includes prospecting as well as cum-mining lease.
Vedanta said the block measures 6.08km² and needs exploration. The company plans to begin the process soon.
More than 160 bids were submitted for the Baghmara mine, which is spread across an area of 608ha of the Balodabazar-Bhatapara district.
Considered to be the oldest explored gold deposit in Central India, the mine is estimated to have a reserve of 2,700kg of gold metal.
Recently, the Government of India announced the offering of a total of 100 mineral blocks for exploration to private companies in order to reduce dependence on overseas purchases.
The blocks are spread over 12,000km² and are identified by Geological Survey of India (GSI).
Two of the mines auctioned were located in the eastern states of Jharkhand and Chhattisgarh.
Separately, Vedanta is reportedly planning to cost cuts due to rising cheap imports from China. The company has also reduced around 2,000 jobs across its aluminium business so far, Live Mint reported.