JSW Steel buys iron ore at Goa's e-auction for steady supply.

JSW Steel bought its maiden lot of iron ore fines from Goa at a price of Rs. 1,830 per tonne recently.

The transaction is significant because it is the also the first time that a major domestic steel maker has participated in an e-auction of Goan ore, which is considered low grade and usually earmarked for exports.

In contrast, Goa's first e-auction of iron ore following the mining ban in September 2012, surprisingly saw zero participation from big steel companies in February this year even as exporters and mine owners bid for the commodity aggressively. JSW bought 8,484 tonnes of iron ore fines at a price of Rs. 1,830 per tonne from the e-auction in Goa recently.

It got a fairly good deal since the fines had a 58.5% iron (Fe) content. It also purchased another lot of 3,000 tonnes of fines of 59.5% Fe content at a price of Rs. 1,970 per tonne. Goa's Directorate of Mines & Geology (DMG) is holding auctions to sell iron-ore that is lying idle in jetties and ports across the state, since September 2012.

ET