Goa E-auction: 70% Iron Ore allotted still lying at Stock Points 

Lifting of Iron ore lying at jetties, MPT and mines in Goa, which have been allotted in the e-auction, is not picking up pace due to low prices in the international market.

According to latest data released by Goan DMG, it was observed that merely 30% of total Iron ore allotted have been either exported or used for domestic consumption. Rest 70% still lying at different stock points.

About 5.40 MnT Iron ore has been auctioned in Goa, out of which, 4.90 MnT has been allotted, 0.62 MnT has been exported, 0.48 MnT lifted for domestic consumption and 3.80 MnT still lying at different stock points.

Participants mentioned that since Iron ore prices have declined sharply in 2014 since e-auction process had started, most of them will make huge loss if they sell at current prices.

“Seaborne Iron ore prices have fallen sharply, if we sell at these prices, we will make huge loss. At an average losses are around INR 1,000/MT. That means some one holding stocks of 500,000 MT will make losses to an extent of INR 550 million (USD 8.7 million),” said an exporter who is one of the participants in most of the auctions.

For list of material allotted, but not lifted by allottes: Click here

Will Goan Government charge penalty on not lifting the Material?

Big question arises, whether Goan government will charge some sort of plot rent or wharfage charges from the participants for not lifting the material allotted to them.

Market participants highlighted that till now government is giving extension to participants looking at poor global prices.

Goa Iron Ore E-auction 

While lifting its 2-year long ban on export of Iron ore from Goa, the Supreme Court had allowed e-auctioning of Iron ore, which was extracted during the 2007-2012 period.  The state has a total of 15 million metric tonne of Iron ore lying at various jetties, stacking yards, mining leases and the Mormugao Port Trust.

Goan DMG hopeful of Duty Cut in coming Budget Session

Goan government is delaying e-auction of Iron ore on hopes that export duty on low grade ore may be reduced in coming budget session. The current export duty on Iron ore is 30% on ad valorem basis.