TEAM HERALD
teamherald@herald-goa.com
PANJIM: Sliding global iron ore prices has forced Goa government not to persist with the iron ore e-auction till the market prices stabilize, a senior mines department official said Friday. Prices have fallen, especially in China, by $11-12 a tonne in past three weeks.
The State has already auctioned approximately 1.7 million metric tons of ore over the last one month. Further, the traders and exporters, who had won the bid during the e-auction have also decided to wait for the prices at the international market to stabilize before transporting the ore lying at jetties, leases and port. As per information, DMG has issued NOCs to few bidders for transportation of ore while rest would be issued by next week on payment of bid amount.
As reported in national media, ore in the spot market has fallen to $108-110 a tonne on cost, insurance and freight (cif) basis, a decline of $10 a tonne in a week and $12 a tonne since February 17. In January, spot ore was $125 a tonne (cif) in China.
A senior mines department official confirmed that government has decided to go slow on the e-auction of ore as the prices have fallen abroad, especially in China, the largest importers of India’s ore. “The third phase of e-auction might take some time. It could be next week or end of the month or later…all dependent on prices…we also need to fix base price for bid, which is also dependent on market value of ore…state also needs to earn from e-auction,” official said.
Directorate of Mines and Geology had initially planned to conduct the third phase of e-auction in the next week. State would be auctioning 15 million metric tons of iron ore lying at jetties, leases, plots, beneficiary plants and port as per Supreme Court order.
State through metal scrap trading corporation (MSTC) had auctioned 5.35 lakh metric tons of low-grade ore on February 17; a second lot of 12 lakh metric tons was auctioned on March 5. In both, only traders and exporters participated, to take advantage of high global prices.
Meanwhile, in order to ensure there is no delay in transportation of ore, Director Mines Prasanna Acharya has asked interested barge owners to make necessary application to the department by March 21 that they intend to do transportation of ore. “Any barge, intending to ply cargo, whether owned by lease holder or otherwise, shall not be allowed to participate if DMG is not informed by March 21,” Acharya said while directing them to pay the necessary registration charges by the due date.
