The most awaited “Mineral Block Auction” is on process now. The technical bids for Odisha’s Ghoraburhani Sagasahi iron ore block started on 11 Feb’16 at 11.00 hrs. The auction was conducted through MSTC. MSTC is providing the online platform to conduct electronic auctions.
The Ghoraburhani Sagasahi iron ore block will open specifically for end user or integrated steel plants. As reported earlier, total 12 firm were in the race to participate in the e-auction. Major biggies and the potential bidders from the steel sector who participated in this auction are:
- Bhushan Power
- Bhushan Steel
- Tata Steel
- JSPL
- JSW Steel
- Essar Steel
- Vizag Steel
- OCL Iron & Steel
- Tata Sponge
- KJS
- Beekay Steel Industries Ltd.
- Bengal based steel maker
Today, at technical bidding round, total 7 bidders qualified the technical round. Those are Bhushan Power, Bhushan Steel, Vizag Steel, Tata Steel, JSPL, JSW Steel and Essar Steel. Now, these qualified bidders will be participating in the second round i.e. Price bidding round on 14 Feb’16.
According to sources, qualified bidders will submit bids on the basis of current global iron ore prices index. Currently, global iron ore prices are hovering at USD 45/MT, CFR China. In addition, the bids may also be considered on the basis of steel plant possessing more steel making capacity as well as distant of the mines from the plants.
Some market participants also shared that, Tata Steel and JSW Steel will be more aggressively bidding for this block as compared to others qualified bidders as both the firms are planning for expansion of their current steel making capacity.
Ghoraburhani Sagasahi iron ore block is situated in the Koira mining circle of Odisha’s Sundergarh district and is spread across 90.62 Hectre mineralized area and it has estimated total deposit of total resource- 99.59 MnT. The mining block is at G2 exploration stage i.e. 50-60% explored.
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