Directorate of Mines & Geology (Government of Goa) has scheduled the 6th Iron ore e-auction for 19 May, 2015.
1.01 MnT (57 lots) extracted Iron ore will be supplied by various miners/suppliers, namely, Timblo Irmaos, Chowgule & Company, Fomento Resources, Mineira Nacional Limitada, V.M. Salgaoncar & Bro, Emco Goa, Minescapr Kadar Ores, Sesa Resources and Sesa Mining.
This would be the 6th Iron ore e-auction, following the Nov’14 e-auction. 0.26 MnT Iron ore lumps (Fe% 48-61), 0.68 MnT fines (Fe% 45-59) and 0.07 MnT of Fe% 54 material (type unknown), stocked at mines head, plant, jetty and processing plant, will be offered for sale.
We think, having an advantage of low transportation cost which is an important factor, Sesa Sterlite will benefit the most. Though, the material in terms of quality is not superior, we can’t deny the fact that Sesa will be compelled to buy them for its Blast Furnace requirement.
Even if traders and exporters show interest, they may have to wait for sometime to export the Ore because of Goa monsoon, which lasts from June to September.
Although, export duty on low grade Iron ore is 10% w.e.f 01 June, 2015, Indian currency, China’s spot Iron ore fines prices & demand and freight rates, will play an important role for determining export viability then.
In the last 5 Iron ore e-auctions, starting Feb 2014, 4.90 MnT Iron ore was sold and out of this, 0.68 MnT was exported. Considering the sold quantity plus what is scheduled for May 19, Govt of Goa is still left with 9.10 MnT of extracted Iron ore.
1 MnT Iron Ore E-auction in Goa Scheduled for May 19
| Suppliers | Fines | Lump | Fines/Lump | Total |
| V.M. Salgaoncar & Bro. | 254,830 | 113,600 | – | 368,430 |
| Minescapr Kadar Ores | 23,810 | – | 73,090 | 96,900 |
| Chowgule & Company | 84,020 | 9,480 | – | 93,500 |
| Sesa Mining Corp. | 87,970 | – | – | 87,970 |
| Sesa Resources | 58,440 | 28,150 | – | 86,590 |
| Emco Goa | 68,580 | – | – | 68,580 |
| V.M.Salgaonkar Sales international | 2,140 | 58,260 | – | 60,400 |
| Sesa Goa | 35,150 | 10,830 | – | 45,980 |
| Soc. Timblo Irmaos | 25,590 | 17,340 | – | 42,930 |
| Fomento Resources | 39,150 | – | – | 39,150 |
| Mineira Nacional | 710 | 20,850 | – | 21,560 |
| Total | 680,390 | 258,510 | 73,090 | 1,011,990 |
Qty in MT
Source: DMG (Govt of Goa)
Leave a Reply