Goa government puts 1.03 MnT of Iron ore under hammer after a period of six months.
Goa Mines & Geology Department has put 1.03 MnT of Iron ore for sale in its sixth e-auction. Exact dates are not known but auctions are expected to be held in last week of May’15.
The state government had last conducted auction in Nov’14, since then falling Iron ore prices in the global market has made sale of low grade ore un-viable.
Indian Government cuts Duty on low Grade Iron Ore (less than Fe 58%) to 10%
Indian government recently announced a cut in export duty from existing 30% to 10% on low grade Iron ore with Fe content less than 58% w.e.f 1 Jun’15. Reduction in duty has brought mixed response amongst miners and exporters. Some feel, cut will not help boost Iron ore export and some has welcomed this move looking at long-term prospective.
Miners in Goa exported most of India’s lower grade Iron ore before the ban. In April last year, the court allowed mining to restart with an upper production limit of 20 MnT a year. Goa’s miners have yet to receive approvals from the regional and federal government to resume operations.
Indian Iron Ore Exports fall by 65% in FY15
Indian Iron ore export witnessed a 65% slump during FY15 due to low Iron ore prices in the global market and mining restrictions in India.
India, once the third largest exporter of Iron ore, had exported 16 MnT of mineral in FY14, 18.1 MnT in FY13, 61.7 MnT in FY12 and 97.6 MnT in FY11. Iron ore exports for FY15 stood at 5.6 MnT.
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