The local government of the Indian state of Goa will be forced to present itself before India’s Supreme Court to seek “guidance and a new directive if any” if there are no takers at the forthcoming auction of 8 million mt of low grade iron ore, a Goa government official said on Thursday, February 25. The government is bound by a Supreme Court order to vacate all stockyards at mines to enable the mines to commence new production.
The official said that the government is unlikely to lower the reserve price of the next auction and will maintain it at around INR500/mt ($7/mt), adding that the same volume has failed to attract any bids as buyers considered the reserve price to be too high.
Although the exact date of the next auction has not been finalized, the Goa government is keen to hold it over the next few days, ahead of the national budget slated to be placed before the Indian Parliament on February 29.