SAIL Seeks Permission To Auction Iron Ore

In order to auction about 70 million tonnes (MT) of its low-grade iron ore stacked up in the states of Odisha and Jharkhand, the Steel Authority of India Ltd (SAIL) has sought permission from the two state governments. A variable price of USD 40-45 per tonne to USD 62 per tonne will be the costing of these iron ore deposits, depending on its iron content.

The necessity to auction the content, as stated by SAIL, is that the company does not have the capacity to transform the low-grade fines into material that would be suitable for the manufacturing of steel. Thus, deposits of the fines have been sitting at these state-owned organizations from the beginning of its manufacturing process. The delay in the auction has also led to the depreciation of these assets.

As per internal reports, SAIL is likely to get approval for the same from the state governments very soon. In return, the state will also gain a portion of the income generated from the auction. It is also reported that the idea to auction the unused fines was proposed by the steel ministry.

An internal source, reflecting upon the potential buyers of iron ore, stated that,

“Secondary steel players can buy it and those making pellets would be interested. Besides there are various steel makers who don’t have mines, they can buy it and make metal”.

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