Iron ore fines stocks bought through e-auctions in the western Indian coastal state of Goa have not been collected by successful bidders in wake of slump in international prices, an official in the provincial government said on Thursday, July 9.
With iron ore stocks already sold still lying in stockyards and at pitheads across the state and with the onset of monsoon rains, fresh e-auctions under the aegis of the Directorate of Mines have been deferred until a more favorable environment, the official said.
According to official data, the Goa government has sold 5.64 million metric tons of iron ore fines stocks so far through six rounds of e-auctions. But of this, 5.62 million metric tons of sold iron ore are still lying at various sites across the state and successful bidders are refusing to transport the stock largely owing to the crash in international prices of the raw material, the official added.
The official said that, with monsoon rains gaining momentum across the country, transportation will not only become difficult but costs too will increase owing to deterioration of road conditions. And with buyers refusing to move purchased stocks, the government has decided to keep further e-auctions in abeyance until the situation has improved, the official added.
Earlier the local government had decided to liquidate entire stocks of 15 million metric tons of iron ore lying idle at pitheads, which had been mined before the Indian government banned mining operations in 2012.