Supreme Court has finally allowed sales of 11.48 MnT of mined Iron ore in Goa, through an e-auction process; no fresh mining has been allowed.
The material available for auction is of low grade because of which domestic steel mills might be uninterested to procure the material in big quantities. Rather it’s assumed that this e-auction is given a green signal to encourage the exports.
Court is yet to take a decision and give more clarifications on the rules and regulations for the auction process as well as participants.
It will form a panel consisting of six members, responsible for the auction process. The member’s names are expected to be announced by mid-November.
This committee will decide limitations for Goa’s Iron ore output and might present the report by 15 February, 2014.
Mining in Goa was banned on 10 September, 2012 when Supreme Court’s Ex-justice, M B Shah found the irregularities in mining operations.
The total capacity of Goa mines is 36 MnT, out of which 90 per cent of the material used to be exported. But after a ban on mining, its total production came down to only 18 MnT in FY13.
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