Courts and government finally okay. But no one seems to be buying the Goa iron-ore

Often, by the time governments, courts, and investors get ready to sell off assets or commodities in a dispute, as in India, the markets are not buying. Without willing buyers, there is “no sale”

This example is from India. While iron-ore mining in the western Indian province of Goa is now finally poised to resume mining within a month, there are no takers for the raw material. That is code meaning “no buyers”.

The result is more stockpiling of the old inventories and a space crunch for any new mine production that the government and courts say can now go ahead.

According to a Goa government official, of the total 15-million tonnes of old iron-ore fines inventory occupying stockyards and India ports, only six-million tonnes have been liquidated AFTER SEVEN ROUNDS of AUCTIONS to sell it. The government is still pushing hard to auction another one-million tonnes of iron-ore before mining operations up country can resume next month.

Citing an example, an official said that as the seventh round of auctions concluded last week, only 50,000 metric tonnes was sold against an offer of one-million tonnes. Under the circumstances, the government is facing an uphill task in liquidating nine-million tonnes of old stocks and the department of mines can do very little to make space for new mined iron ore that will arrive soon. The resumption of mining in Goa was expected to be led by Vedanta Resources, which was readying to get production from its Codli mines under way, starting around mid-October.

To read more; go to http://www.miningweekly.com/article/lack-of-takers-for-goa-iron-ore-clogs-all-stockyards-2015 Sent from my iPad

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