The problems of iron ore miners in two districts of Karnataka continue even after the commencement of e-auctions. For, the miners in Chitradurga and Tumkur, which mainly produce low-grade iron ore fines, find no takers for their produce at the auctions.
Online auctions of iron ore commenced in Karnataka from September 14, following a Supreme Court direction earlier that month. The apex court had, on September 2, granted permission for the sale through an e-auction of about 25 million metric tonne of the existing stock of iron ore in the districts of Bellary, Chitradurga and Tumkur.
However, in the last two rounds of auctions on September 14 and 29, none of the steel manufacturers or pig iron and sponge iron-makers have bothered to show interest to buy low-grade iron ore fines from Chitradurga and Tumkur districts.
The main reason is that there is no proper technology available with the steel makers in the country to exploit low-grade iron ore. The ore is largely exported to China, where steel mills blend it with high-grade ore and produce steel.
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