Auction of emerald and gold mines in Aravallis put on hold | Jaipur News

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Auction of emerald and gold mines in Aravallis put on hold

Jaipur: The rocky spine of the Aravallis in Rajasthan, one of the world’s oldest mountain ranges, once again found itself at the crossroads of conservation and commerce. Plans to auction emerald and gold mines located in these hills were put on hold, as legal uncertainty clouded the future of mineral exploration in the region.In the Udaipur division, the state mining department had identified a high-value gold mine and an emerald deposit in Rajsamand and readied them for auction. The process, however, was halted midway. A senior official source said, “The entire exercise was placed on hold in view of a recent Supreme Court ruling as the department is unwilling to proceed until there is clear legal guidance on the matter.”At the centre of this decision is the Mojawaton ka Guda Emerald Block in Rajsamand. Spread across 348.92 hectares, the block has already undergone preliminary exploration by the Geological Survey of India (GSI). Encouraged by initial findings, the state moved to auction the block under a composite licence — a 2-stage mechanism increasingly used to attract private investment in mineral exploration.“Under this arrangement, the successful bidder is first required to carry out detailed exploration and submit periodic reports to the state mining department and the Indian Bureau of Mines. If the findings confirm economically viable reserves, the licence automatically converts into a full-fledged mining lease, allowing commercial extraction. It is a model designed to reduce risk for the state while incentivising exploration, but one that now hangs in suspension,” the source said. The Rajasthan govt had simultaneously attempted to revive its ambitions in gold mining. After a previous attempt failed to draw adequate interest, the department of mines and geology relaunched the auction of two sizeable gold blocks, aiming to position the state on India’s gold-producing map.“Digital bids were recently invited for composite licences for the Kankriya Gara Block in Banswara district and the Dugocha (Salumber) Block in Udaipur district. The technical bids were scheduled to be opened on Jan 2, 2026, marking what officials described as a fresh start for both projects. As the Dugocha block falls within the Aravalli range of Udaipur, the auction was put on hold,” the source said.The Dugocha block stands out for its scale and promise. Spanning 472 hectares, it is estimated to hold over 1.74 million tonnes of gold-bearing resources with an average grade of 1.63 grams per tonne. Based on current valuations, the in-situ value of the deposit is pegged at around Rs 1,410 crore.A senior official said, “Following the Supreme Court order issued in Nov 2025, the Centre imposed a complete ban on the grant of any new mining leases across the entire Aravalli range. The directive applies uniformly to Delhi, Haryana, Rajasthan, and Gujarat. The court ordered a freeze on fresh leases until a comprehensive management plan for sustainable mining (MPSM) is prepared.”

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