Goa Miners seek Clarity on E-auction allowed by Supreme Court

With India’s top court allowing sale of extracted iron ore through e-auction, there is a sigh of relief for miners based in Goa, India’s western coast, who have been deprived of trade since last 14 months.

According to Supreme Court’s directive of e-auctioning 11.48 MnT of extracted iron ore lying in the form of fines, dumps and lumps.

However, it will take some time as court has directed to form a committee, which will decide the procedures and also plan on cap of iron ore to be mined from Goa.Supreme Court has asked this committee to submit their report on E-auction by February 2014. However, miners say, there is lack of clarity on many factors like

1. Whether iron ore is available for domestic sales or export sales?

2. Who will conduct the E-auction and on what parameters?

3. Whether foreign buyers are eligible to participate in E-auction?

4. When will fresh mining be allowed from the sate?

Unlike in Karnataka, iron ore available in Goa is low grade and generally not used by domestic steel makers. Miners have welcomed this move and expect Supreme Court will also allow mining in Goa certainly with some capping.

Goa is the largest iron ore exporting state in the country. Exports of iron ore from India have fallen drastically after Supreme Court had put a blanket ban on mining and exports in September 2012. State had managed to produce mere 18 million tonnes during April-Sep 2012, against approximate production of 36 MnT in financial year 2011-2012.

Indian produced around 145 MnT in 2012-2013 and exported around 18 MnT in the same period.

Shipper Wise Iron Ore Exports from Margao Port (Goa) in 2012-2013