Directorate of Mines & Geology, Government of Goa, is yet to decide about conducting the 4th Iron ore e-auction.
Prasanna Acharya, Director of Mines & Geology, Government of Goa in short talk with SteelMint expressed, “Various factors have caused interruption in conducting 4th Iron ore e-auction. Presently, we are trying to strategize things.
Not only continuous decrease in Chinese spot Iron ore fines prices is a significant factor to delay the auction, monsoon is an additional concern.
Issues around logistical constraint in transportation of the material and increase in moisture have to be ensured. During monsoon, exports drop because of increase in moisture percentage of Iron ore.”
Since last e-auction held on 12 May, 2014, Chinese Fe 62% spot Iron ore Fines prices have weakened by USD 12/MT. Current prices are at USD 91/MT CFR China.
A total of 2.3 MnT Iron ore has been offered in the first 3 e-auctions, while, 2.1 MnT is sold. Royalline Resources was the biggest buyer at 0.4 MnT and Sesa Sterlite was the 2nd largest at 0.3 MnT.
Out of the total sold quantity, 0.5 MnT Iron ore has been exported from 23 Mar, 2014 to 22 May, 2014. Royalline Resources is the leading exporter at 0.23 MnT, followed by Bagadiya Brothers at 0.19 MnT.
In the 3rd e-auction, JSW Steel had participated for the first time and procured just 11,484 MT of Fe 59% Fines at INR 1,867/MT (basic) which converts to USD 31/MT.
In Nov, 2013 maintaining the ban on mining, Supreme Court had allowed to sale 15 MnT of Iron ore stockpile that was mined before the enforcement of ban on 5 Oct, 2012. The raw material is lying at various sites in the state i.e. 10.8 MnT at mines, 4 MnT at jetty and about 0.2 MnT at various ports. 12.9 MnT of ore is still to be offered for sale.
India was rated as the third largest Iron ore exporter globally before imposition of mining bans in Goa. The country exported 14.4 MnT Iron ore in FY14 and it is anticipated that the exports will further decline to nearly 12 MnT this fiscal.
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