India: SAIL Concludes 60,000 MT Iron Ore Fines Auction from Barsua

Govt owned unit - SAIL (Steel Authority of India) has scheduled its second iron ore fines e-auction today (19th Feb'20). The auction conducted was for 60,000 MT iron ore fines (Fe 62%) from its Barsua iron ore mines in Odisha.

As per the sources, the entire quantity offered has been booked in today's e-auction. The material was booked at INR 2,270/MT (loaded to rake, Royalty, DMF, NMET & other taxes extra). The material was heard to be booked by two Indian steel mills.

Earlier 100,000 MT iron ore fines (Fe 62.5%) auction was conduction on 17th Feb 2020 from its Bolani iron ore mines in Odisha. As per the sources, the entire quantity offered was booked at INR 2,260-2,270/MT (loaded to rake, Royalty, DMF, NMET & other taxes extra).

In Sept'19, Indian government took a decisive step in assuring the supply of raw material to the steel sector by allowing Steel Authority of India Ltd (SAIL) to sell 25% of its total annual mineral production in the merchant market. This was in order to avoid any kind of possible disruption that may occur because of mining auction due on March 2020.

The government of India has also given permission to sell 70 MnT of sub-grade minerals in the captive mines of SAIL (Steel Authority of India Ltd) This would enable SAIL to lead the way in ensuring the availability of iron ore in the years up ahead for the steel sector.

Last year the company's iron ore production was 28 MnT.