Vedanta had filed a writ petition in High Court on allowing iron ore export from the state’s mines. The mining conglomerate has sought quashing of Supreme Court appointed Monitoring Committee’s communication that rejected its request to allow export of iron ore that are unsold at the e-auction.
According to the recommendations made by CEC, export of iron ore should be permissible only when steel plants are not willing to purchase the mineral on or above the average price realized by the Monitoring Committee during the sale of corresponding grades of of 25 MnT existing stock of fines/lumps.
According to Vedanta, iron ore put up for sale through e-auction was not being purchased by steel companies. This happened even though the base sale price fixed by the company was in line with the average price realized by the Monitoring Committee for the corresponding grades during the sale of 25 MnT tonne of existing stock of iron ore.
The first hearing of the case was held yesterday (i.e. 13 Jul’16) in Karnataka HC . An industry official in conversation with SteelMint shared that in hearing was held yesterday in the HC and the next hearing for the same has been scheduled next week. Low grade iron ore (less than Fe 58%) is not fetching buyers in the Karnataka e-auctions leading to stock piling. Owing to lesser buyers in domestic market Vedanta has requested HC to allow exports from state.
~Partially sourced
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