Jindal, JSW bidding for Goa's 0.5 MT ore e-auction

ET BUREAU, MUMBAI/KOLKATA | 11 February 2014 20:57 IST

With barely a week to go before firstever e-auction of iron ore in Goa following the Supreme Court (SC) banned mining and exports in September 2012, only about 0.5 million tonne is being put up for sale, according to a government document reviewed by ET.

Earlier, about one million tonne was estimated to be put up for e-auction. 

The e-auction, which will take place on February 17, 2014 will be conducted through MSTC.

The base price shall be fixed on or before February 16, 2014 and communicated to MSTC.

"The base price shall be visible to registered bidders at the commencement of e-auction," Prasanna Acharya, Goa's director of mines and geology said in an official notification.

"There is still time to go till February 12," said assistant director (mines & geology), Goa, Parag Nagarcekar. Incidentally the last date to qualify for the auction after payment of earnest money deposit (EMD) was extended from January 29 to February 12, 2014. 

In the first e-auction lots scheduled on February 17, more than a dozen odd companies are supposed to offer mineral lots for price bidding.

This includes the likes of Sesa Mining Corporation, Sesa Sterlite, Timblo Enterprises, Sociedade Timblo, V D Chowgule etc. 

According to data from Directorate of Mines & Geology, Goa, some 85% of the total auction material constitute fines while the remaining 15% is composed of lumps with Fe (iron) content of the material ranging between 43.88% and 58%. 

By Indian standards, Goa's ore with upto 55% Fe content has traditionally been considered low grade, with Indian steel firms opting for higher grade ore from Jharkhand, Odisha, Chhatisgarh or even Karnataka.

However, the mining crisis and subsequent paucity of ore in the last few years has forced them to opt for technology that can make use of low grade ore. 

The auction could thus see strong participation from the iron-ore starved steel industry in India. JSW Steel, Jindal Steel and Power, Bhushan Steel and several other companies have registered themselves with Indian Bureau of Mines to participate in the auction.

 

However, mining companies in the state are unhappy about the situation.

"Who is the buyer? In the last 40-45 years none of the domestic steel companies have bought even a tonne of ore from Goa since it is considered to be low grade and unfit for use," according a top mining company official . 

When asked about possible buyers for the auctioned ore, a senior mines department official in Goa said: "We are getting registrations from buyers. We expect mainly exporters who will buy it for exports." 

Out of the over 15 million tonnes of iron ore lying idle in jetties and ports across the state, 3.9 mt is unaccounted and confiscated iron ore while the 11.46 mt of ore inventories has legal ownership. 

SC appointed a three-member monitoring committee to oversee eauctioning process in November and said that the proceeds from the sale will be kept in separate fixed deposit account by the Goa government till it finally decided the matter. 

Referring to the situation in the state in which close to one lakh people have been affected, Auduth Timblo, chairman of Fomento Industries and a mining industry veteran in Goa said: "We have never faced such a situation in the last 50 years. This is unsustainable." 

"They say the customer is important. But thanks to the situation, we have earned the tag of being unreliable suppliers and customers from Japan and China have run away from us," he added.

Original Report 


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Previous Comments

2 Years Became And 35 Thousand Corers Recovering Procedure Has Not Yet Began. BJP Is Same Like Congress. Only AAP Has Guts And Will Recover 35 Thousand Corers.

- Jose Rod, Goa | 17 th February 2014 21:33

 

The illegal mining in Goa which accelerated from the year 2000 has been an all party venture and loot with the Congress, BJP, NCP and the MGP all having shared and enjoyed the pie with Manohar Parrikar himself having been the Chief Minister earlier from 24 October 2000 to 2 February 2005.

The current probe into the alleged over Rs 30,000 crore illegal mining scam by a Special Investigation team is nothing but a drama and a mere eyewash to divert and distract the attention of the people of Goa from the mind boggling follies of this non-performing now lack luster government. We can rest assure that despite all that decade long rampant illegal mining and reckless plunder of Goa’s national resources, no one will be punished and not a paisa will be recovered.

Now that the whole mining issue is under the scanner of the Supreme Court, the mining activity when it resumes will be monitored under the directions and supervision of the Court. Goa’s rich mineral resources cannot be pocketed by the handful mining lords. The Mining leases ought to be auctioned so that the State exchequer gets the best deal. But Goa’s Advocate General who has only the interests of the Mining barons so dearly at heart has reportedly been aggressively advising the government against the auctioning of the mining leases. He has reportedly even gone to the extent in cautioning Chief Minister Manohar Parrikar that he may lose his chair if he does not protect and shield the mining lobby.

Mr. Advocate General, it is not your mandate to give the government political advice. You are obligated to only tender sound legal advice which would be in the best interest of the State. As the Advocate General you cannot continue being a Messiah of the mining companies. You are India’s highest paid Advocate General with the Goan tax payer shelling out on you up to a whopping Rs eight lakhs a month and in addition Rs 75,000 per day on your every jaunt to Delhi. After being paid five times more than the President of India there can be no reason why you should not at all times truly keep Goa’s best interests at heart.

Mr. Atmaram Nadkarni, you write and speak a lot about Spiritual values. Please walk the talk. Time for some self introspection. It’s Goa that should have the last laugh.

- Aires Rodrigues, Ribandar | 14 th February 2014 18:35

 

Congress & BJP Must Put In Their Manifesto That They Will Start Mining & Mopa Once They Comes To Power. Let See How Many Goans Will Vote And Let See How Many Goans Are Depended On Mining & Mopa. It Will Be Clear After Election. Let Us Wait For Their Manifesto.

- Jose Rod, Goa | 13 th February 2014 15:26

 

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