Goa 22nd Iron Ore E-auction: Vedanta Remains the Largest Bidder

As per the recent updates received, the 22nd Goan iron ore e-auction held on 22nd and 23rd Aug’19, received bids for only 39% (i.e 2.06 MnT) out of total offered quantity of 5.34 MnT. Rest 3.28 MnT iron ore remained unsold.

Vedanta stood the largest bidder-

Vedanta’s iron ore purchases from Goan e-auction stood at 1.41 MnT with around 1.08 MnT of ROM, 0.22 MnT fines and 0.1 MnT lumps. Faldessai stood second largest bidder at 0.2 MnT followed by Jayeebhava Alluri Industries at 0.1 MnT. Other bidders included Vaibhavi Shipping, Bhadrashee, Kodee Resources, Friends Impex, Prime gold enterprises, Seabird Marine, Dinar Tarcar Resources, AS Exports & Imports, VM Salgaocar, and Nathurmal.

Majority of the quantity put under auction was of low-grade with highest grade reaching Fe 60.89%. Out of the total offered quantity, 4.04 MnT was ROM ranging from Fe 27.6-60.89%, 1.013 MnT was fines having Fe content 18.6-60% and 0.279 MnT was lump ranging from Fe 38.94-58%.

The bid prices for the material stood between INR 300-2430/MT. The base price for material with grade above Fe 60% was at INR 500/MT, for above Fe 50% ore priced at INR 400/MT, and for ore below Fe 50% price was at INR 300/MT.

Last iron ore e-auction from Goa was conducted on 05 May'17. Goa DMG had managed to sell around 10.9 MnT iron ore out of 15.5 MnT iron ore identified via 21 e-auctions conducted since auctions started in the state from Feb’14 onwards.

In 2012, the apex court had declared all the mining held post 2007 as illegal and said all the ore lying at jetties and plots (15 MnT) is state’s property. Also, the Supreme Court of India in early Feb'18 said that the 88 iron ore mine leases that were granted second renewal in violation are directed to stop all mining operations with effect from 16 Mar’18 until fresh mining leases are granted and fresh environmental clearances are granted. Thus the 2nd renewal granted to the mines by state of Goa is liable to be set aside and stands quashed.