Byline: Karan Sehgal
Low demand roadblock hits twelfth iron ore e-auction
Just 12% of ore on offer was sold
the goan network
PANAJI: Just after performing better in the previous e-auction of iron ore, the department of mines and geology (DMG) again hit a roadblock in the twelfth e-auction on Wednesday, when it could sell barely 12 per cent of ore it had offered. A source close to the development informed, “Of 15.26 lakh tons of ore offered for auction, only 1.86 lakh tons could be sold.” There wasn’t much demand from the bidders, which resulted in such a poor response."
The base price for 53-grade, fine ore was kept at Rs 500 per ton, which was pretty much in line with the previous auction. This clearly shows that price wasn’t the spoilsport, but low demand was. Throughout this year, DMG has had little success in selling iron ore through e-auction route. A ray of hope was seen in the previous auction, which happened on September 22, when 37 per cent of iron ore offered was sold. But, the good run didn’t last long, as evident from the numbers of the latest e-auction.
The State government still has 8.4 million tons of iron ore left to be sold through e-auction route. Given that the biggest consumer of ore, China, is struggling with recession, it is highly unlikely that Goa will be able to sell this 8.4 million tons anytime soon. Besides, mining is expected to re-start in the current month itself. With more ore, the price will further crash and it could result in a vicious circle.
