SC allows e-auction of already excavated iron ore at Goa

After a year's ban on mining in the state of Goa, the Supreme Court has a taken a step forward. In an interim order pronounced by the apex court, it has allowed e-auction of already excavated iron ore in the state of Goa, reports CNBC-TV18's Anshu Sharma. About 11.48 million tonne of excavated iron ore is lying idle in the state.

SC has also said that the proceeds from the sale of already mined iron ore will be kept in a fixed deposit account. Fixed deposit accounts will be managed by the state of Goa and monitored by a panel set by the SC. The court has also formed an expert committee which will look into inter generational equity. The committee will submit an interim report on putting a cap on mining in the state. Also Read: Supreme Court lets Goa state resume sales of iron ore
During the earlier proceedings, the state of Goa had asked to fix a mining cap at 45 million tonne per annum. Prior to mining ban in the state, Goa was producing about 65 million tonne per annum of iron ore.
Mining was first suspended by the state in September 2012 and later all mining and transportation activities were banned by the Supreme Court in October last year. The ban came after the government appointed Shah Commission panel submitted its report on irregularities in mining in Goa. The panel was headed by justice MB Shah and in the report it alleged that due to irregularities in the mining sector Goa, it has caused a loss of about Rs 35,000 crore to the exchequer in the past 12 years.
The two panel constituted by the SC will submit its interim report by February 15 next year. Though the mining ban is still on, respite for miners doesn't seem in sight.
Meanwhile, Nigel D'Souza says Sesa Sterlite is sitting on an inventory of nearly 2.5-3 million tonne and this is for over a year odd. But clarification is required on whether this inventory can be exported. If they go the Karnataka way, then 10 percent of the sales proceeds will impact the margins. For the last one year there have been no iron ore sales. What this would mean for Sesa Sterlite, Bhavesh Chauhan, metal analyst, Angel Broking and Ambar Timblo, Hon Secy, GMOEA analyse on CNBC-TV18.