 "Steel mills stay away from Goa ore auction")
Starved steel mills stayed away from participating in the first round of ore auction by the Goa government on Monday.
The auction saw participation by traders and miners. Mills kept away due to poor quality, moisture and inability to move the ore. This was against the estimates that mills like JSW Steel would grab a substantial portion for its Dolbi plant in Alibaug, Maharashtra.
Seshagiri Rao, joint managing director and group chief financial officer, said, “We have registered with the Directorate of Mines and Geology, Goa, for participating in the auction. But, I don’t know the reasons for not participating. Probably those were quality and logistics. But, we are sure of participating in the bidding process in future.”
OreTeam, a Delhi-based research house, said 11 companies like Sesa Sterlite, Fermento Group, PTI Timblo, VM Salgaocar Group, Bagadiya Brothers and other small trading-cum-export firms had participated.
Sources said the bid price was higher than the determined base price. Ore with 56 per cent of iron content was bid at Rs 1,910 a tonne against the base of Rs 1,630 a tonne. Similarly, ore with 51 per cent of iron content, or fines, invited a bid at Rs 1,700 a tonne against Rs 910 a tonne.
Prakash Duvvuri, head, research and business development, said lower grade, ferrying problems, transportation hurdles and rail-wagon unavailability were some of the reasons for the disinterest.
A quantity of 11.5 million tonnes for auctions is with various miners in Goa. Another round may start soon.
The auction saw participation by traders and miners. Mills kept away due to poor quality, moisture and inability to move the ore. This was against the estimates that mills like JSW Steel would grab a substantial portion for its Dolbi plant in Alibaug, Maharashtra.
Seshagiri Rao, joint managing director and group chief financial officer, said, “We have registered with the Directorate of Mines and Geology, Goa, for participating in the auction. But, I don’t know the reasons for not participating. Probably those were quality and logistics. But, we are sure of participating in the bidding process in future.”
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JSW Steel had confirmed it would participate.
By the Supreme Court order, the government of Goa auctioned 545,000 tonnes of low grades (between 44 per cent and 58 per cent of iron content). The auction was conducted in two parts. The first for 125,000 tonnes was for smaller lots of less than 10,000 tonnes. The second was for 420,000 tonnes.
Haresh Melwani, chief executive, HL Nathurmal, a Goa-based iron-ore miner and exporter, said, “Mills stayed away probably because the ore was excavated years ago and there was a possible fear of quality deterioration. Also, the deposits had high moisture. This would have raised the cost of transportation.”
JSW Steel had confirmed it would participate.
By the Supreme Court order, the government of Goa auctioned 545,000 tonnes of low grades (between 44 per cent and 58 per cent of iron content). The auction was conducted in two parts. The first for 125,000 tonnes was for smaller lots of less than 10,000 tonnes. The second was for 420,000 tonnes.
Haresh Melwani, chief executive, HL Nathurmal, a Goa-based iron-ore miner and exporter, said, “Mills stayed away probably because the ore was excavated years ago and there was a possible fear of quality deterioration. Also, the deposits had high moisture. This would have raised the cost of transportation.”
OreTeam, a Delhi-based research house, said 11 companies like Sesa Sterlite, Fermento Group, PTI Timblo, VM Salgaocar Group, Bagadiya Brothers and other small trading-cum-export firms had participated.
Sources said the bid price was higher than the determined base price. Ore with 56 per cent of iron content was bid at Rs 1,910 a tonne against the base of Rs 1,630 a tonne. Similarly, ore with 51 per cent of iron content, or fines, invited a bid at Rs 1,700 a tonne against Rs 910 a tonne.
Prakash Duvvuri, head, research and business development, said lower grade, ferrying problems, transportation hurdles and rail-wagon unavailability were some of the reasons for the disinterest.
A quantity of 11.5 million tonnes for auctions is with various miners in Goa. Another round may start soon.