Indian steel companies such as JSW Steel, JSPL and Essar Steel could hope to get larger raw material support from Goa soon.
Against the earlier estimate of 11.5 million tonne (mt) of mined iron ore lying idle, more than 15 million tonne of such ore is expected to be sold through e-auction, a senior official, close to the development, said.
The quantity of ore estimated by the Supreme Court-appointed committee for e-auction is enough to support annual steel making capacity of up to 10 million tonne.
Iron ore mining in the state had come to virtual standstill due to a Supreme Court crackdown on illegal mining.
The SC-appointed committee to verify the availability of iron ore from Goa is expected to submit report by December 15 this year.
The court appointed a three-member monitoring committee to oversee e-auctioning process and said that the proceeds from the sale will be kept in separate fixed deposit accounts by the Goa government till the apex court finally decided on the matter.
?During a meeting, the committee has been informed that state has more than 15 million tonnes of idle iron ore. The actual e-auction of iron-ore could begin from January,? the official said. The base price will be decided on the basis of grades of iron ore. The Goa ore has more than 55+Fe content.
The domestic steel mills have traditionally preferred ores with higher iron content but are now also developing technology to use the low grade ore.
Indian steelmakers are raising their iron-ore beneficiation and pelletisation capacities as they seek to expand the range of ore that their plants can handle.
Goa used to be India’s top exporting state, with sales of more than 40 million tonnes a year mostly to China. But it has not produced or exported any ore since the Supreme Court imposed a ban to curb illegal mining.
The investment in pelletisation capacity has coincided with fall in India’s iron ore production and exports as the courts have partially banned iron ore production in Karnataka and fully stopped mining in Goa. Iron ore exports are also restricted in Goa and Orissa.