First ever E-auction by Goa, Directorate Mines and Geology (DMG), for 0.53 MnT iron ore sold out completely. Interestingly no Indian steel miller participated
The First Iron ore auction of 0.53 MnT held by Goa Directorate Mines & Geology (DMG), received overwhelming response from the Indian miners owner and exporters, according to trade sources close to this matter told SteelMint. Interestngly no Indian steel miller took part in the mammoth auction of 15 MnT, which will go for 15-17 weeks.
Auction was scheduled in two parts. The first auction of 1,25,000 MT was held between 10.00 hrs to 12.00 hrs, which was for smaller lots of less than 10,000 MT and the second auction was conducted between 14.00 hrs to 16.00 hrs, which was for 4,20,000 MT.
Sources confirmed, ”In the first session bid prices were slightly higher than the base prices, but in second auction , which was for bigger lots received much better response. One lot of Iron fines having 53% Fe content was sold at INR 1,610/MT, another lot with Fe 54% was sold at INR 1,710/MT and Fe 56% was sold at INR 1,910/MT, cargo lying at jetty.”
Biggest lot was of 1,40,000 MT having 50.9 Iron content, carrying a base price of INR 910/MT. Bids were received as high as INR 1,700/MT because of large quantity, said sources.
Indian Steel Mills did not Participate in the auction
People were anticipating big steel mills like JSW, Bhushan, JSPL to take part in this auction but none of them participated probably because of low grade iron ore. Sources confirmed 12 participants have registered with Goa DMG namely,
1. Sesa Sterlite (Mine Owner)
2. Fermento Group (Mine Owner)
3. PTI Timblo (Mine Owner)
4. V.M. Salgaocar Group (Mine Owner)
5. G.N. Agrawal (Mine Owner)
6.Chowgule (Mine Owner)
7. Bagadiya Brothers (Trader)
8. Radiant International (Trader)
9. Kinneta, Hyderabad (Trader)
10. Sudar Industries, Mumbai (Trader)
11. S.D.M.C (Trader)
12. Shraddha Ispat P Ltd (trader)
The auction process is governed under strict supervision of the apex court’s monitoring committee and held by the State Directorate of Mines & Geology as per the directives of the Supreme Court.
The ore, which has been lying at various jetties since September 2012, when SC banned the exports and fresh extraction will be auctioned on Monday through a proper system, a senior department official said.
While total 15 MnT of ore is lying at jetties, mining leases and yards, only half a million was auctioned on 17th February 2014.
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