Team Herald
PANJIM: Falling international prices of low-grade iron ore had a major impact on the 7th phase of iron ore e-auction with only 55,000 tonnes of ore of the one million tonnes identified for auction, getting sold on Tuesday.
“Only 55,000 tonnes of ore got sold on Tuesday. Such low response was due to the falling prices of the ore,” sources said.
One million tonnes of iron ore had been identified for e-auction on Tuesday with the base price fixed at Rs 500 to Rs 2000 per tonne. The ore was stocked at Codli, Odamol, and Tudou mines and at Vagus Jetty. The grade of the ore varied from 35 ferrous content to 63 Fe content.
The e-auction was conducted through Metal Scrap Trading Corporation (MSTC), under supervision of the Supreme Court appointed monitoring committee by the directorate of mines and geology.
DMG had identified total 15 million tonnes of ore for e-auctioning, of which by now six million tonnes of ore has been auctioned, fetching revenue of Rs 840 crore.
The balance nine million tonnes of ore have to be auctioned before fresh extraction of iron ore is permitted. The government expects mining operations to start in October. As per the Supreme Court order, government cannot allow fresh production unless the existing identified ore is auctioned.
The first three e-auctions, held on February 17, March 4 and May 12, last year, had received a very good response. Over 15 companies had participated in the process. Thereafter, following a fall in iron ore prices in the international market, the demand for ore reduced in the e-auctions on August 19, November 6 and 7 last year and then on May 19, this year.
