PANAJI | Oct 26, 2016: The 17th iron ore e-auction received poor response with only 1.1 million tonne of the approximately 2 million tonne of ore put up for e-auction by the directorate of mines and geology (DMG) being sold.
Sources in the DMG attributed lack of enthusiasm among bidders to the low grade of ore, which has no buyers in China.
Most of the iron ore grade put up for e-auction was between 44 and 57.
Low grade iron ore is used in the domestic market, but there is no steel industry in the state. It is difficult to sell the ore outside the state due to heavy iron ore transportation.
The state government has identified around 16.58 tonne of iron ore lying at jetties and mining plots. In 2014, the apex court, in its order in the illegal mining case, had declared all iron ore extracted after 2007 as illegal and directed the state government to e-auction the ore.
(Source: http://timesofindia.indiatimes.com/)