–JSW Steel buys 11,484 tn iron ore in Goa e-auction last week –JSW Steel buys iron ore in Goa e-auction at 1,830-1,970 rupees/tn
–Sesa Sterlite buys 230,649 tn iron ore in Goa e-auction last week –Sesa Sterlite buys iron ore in Goa e-auction at 640-2,280 rupee/tn .
Mumbai: JSW Steel Ltd bought 11,484 tn iron ore at the third electronic auction held by the Goa government on May 12, while Sesa Sterlite Ltd bought 230,649 tn of the mineral, according to a filing on the Directorate of Mines and Geology’s website.
Sesa Sterlite has participated in all of the three iron ore e-auctions held since Feb 17, while for JSW Steel it was the first time.
he iron ore picked up by JSW Steel was priced in the 1,830-1,970 rupees a tn range, totalling 21.43 mln rupees, while that bought by Sesa Sterlite was in the 640-2,280 rupees a tn range, totalling to 489.85 mln rupees. Sesa Sterlite picked up iron ore from its own stockpiles.
JSW Steel bought 58.5-59.5% of iron content iron ore while Sesa Sterlite bought 51.38% to 62.14% grade iron ore. Giriraj Daga, analyst at Nirmal Bang Institutional Equities, said the amount bought by JSW Steel was insignificant in comparison to its need of 20 mln tn ore per year.
He said the mineral would be most likely be used by the company’s plant at Dolvi in Maharashtra. On Apr 21, the Supreme Court had allowed resumption of iron ore mining in Goa, with riders, and ordered that 10% cess will be imposed in future on sale of iron ore mined by private miners.
The court had also directed setting up of a special fund, Goa Iron Ore Fund, which will be utilised for restoration and rehabilitation.
The court said 10% of sale proceeds from e-auctions of iron ore will go to this fund. At 1442 IST, shares of JSW Steel were up 4.4% at 1,229 rupees on the National Stock Exchange, while those of Sesa Sterlite were up 5.65% to 227.10.