Steelmakers cold to e-auction of iron ore | business | Hindustan Times
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Steelmakers cold to e-auction of iron ore

business Updated: Nov 10, 2011 21:34 IST
Vivek Sinha
Vivek Sinha
Hindustan Times
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The e-auction of iron ore this month in Karnataka has received a lukewarm response from steel manufacturers, thanks to the high price of ore on offer.

National Mineral Development Corporation, the only miner operating in the state after a Supreme Court verdict in August, had pegged the price of high-grade iron ore at Rs 2,600-4,000 per tonne. The result: only 12.4 lakh tonnes of ore was auctioned last week against the targeted 23.2 lakh tonnes.

More than 40 companies are believed to be in the fray for the NMDC e-auctioned iron ore.

“The quality of ore being offered though the e-auction route is not of the desired level,” Srinivasa Rao, secretary, Karnataka Iron and Steel Manufacturers Association told HT.

The government, however, denied that ore was being sold at a higher price and was confident that it would find takers by the end of this month.

“Our target this month is to auction 75 lakh tonnes and I am sure we will achieve that,” said HR Srinivasa, director, department of mines, Karnataka.