In the 8th Goa iron ore e-auction conducted yesterday, 77% of the quantity offered remained unsold.
DMG, Government of Goa conducted 8th iron ore e-auction yesterday. 1.1 MnT iron ore comprising of (0.88 MnT ROM, 0.12 MnT fines & 0.10 MnT lump) was offered in the e-auction. Out of the offered quantity, only 0.25 MnT (249,681 MT) iron ore was sold.
Despite lower base prices, the e-auction failed to attract bids. Only 20 lots out of the 60 offered lots fetched bids from the parties. Out of 0.6 MnT ROM offered by Codli Mines, merely 0.05 MnT was allotted.
A participant shared that hardly 4-5 parties showed interest in yesterday’s e-auction. Partcipants looked more interested towards ore of high grade. Majority of the material allotted comprises of Fe content ranging from Fe 59-65%.
Bid prices up by upto 78%
Majority of lots containing fines fetched high bids. Bid prices for fines moved up by upto 78%. For instance, fines (Fe 60%) located at Tollem plant received bids at INR 890/MT against its base price of INR 500/MT.
Most of the lots containing lump received flat bids, while for the remaining, bid prices moved up by upto 40%. Lump (Fe 63%) located at Sutolim Mines was sold at INR 200/MT, more than its base price of INR 500/MT.
Bid prices for ROM witnessed an increase of upto INR 160/MT. ROM (Fe 64%) located at Codli Mines received bids at INR 660/MT against its base price of INR 500/MT.
Reduced Participation – A matter of worry for DMG, Govt. of Goa
DMG, Govt. of Goa is looking forward to clear the mined stock before fresh mining begins in Oct’15. Therefore, it has planned to conduct 5 more e-auctions in this month itself, beginning tomorrow. 1.2 MnT iron ore will be offered in tomorrow’s e-auction.
8 iron ore e-auctions have been conducted so far in the state of Goa; 5.6 MnT iron ore has been allotted via these auctions. Thus, out of 15.1 MnT iron ore stock pile which was mined prior enforcement of mining ban in the state, 9.5 MnT iron ore is still left to be sold and will be auctioned in the upcoming e-auctions.
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