Sesa Goa To Export Iron Ore Fines During Monsoon Season

Sesa Goa, the country’s largest private iron ore exporter, plans to export 500,000 tonnes of iron ore fines from Goa this monsoon, reports Smitha
Venkateswaran in Panaji. This is the first time any mining company will be attempting to export iron ore fines from Goa during the monsoon (between June and September).

“This is being done on an experimental basis. During the dry spells, we will transport iron ore fines through mooring dolphin at the port,” said Sesa Goa managing director PK Mukherjee. He added that there would be sheds covering the barges to prevent moisture from affecting the iron ore fines.

Last week, Sesa Goa, a part of London-listed Vedanta Resources, has acquired Goa-based Dempo Group’s mining assets for Rs 17.50 billion in an all cash deal in order to further consolidate its position in the domestic industry. Sesa Goa has iron ore mines in Goa, Karnataka and Orissa.

In Goa, ore is transported from jetties near the mine sites (bunders) to the port in barges. Sesa Goa has a captive fleet of twenty barges. While shipping of fines is generally restricted to the season between September and May, some quantity of iron ore lumps is shipped throughout the year.

According to company officials, Sesa Goa plans to export approximately 200,000 tones of iron ore per month during the monsoon season. Every year, Sesa Goa exports approximately four million tonnes of which about 3.2 million tons are fines and 0.8 million tons are lumps.

“Sesa Goa is trying to use the existing infrastructure to earn some marginal profits. These barges are otherwise idle during the monsoons”, said Shivanand Salgaoncar, President of Goa Mineral Ore Exporters Association (GMOEA) and Managing Director of V. M. Salgaocar Group of Companies.

Meanwhile, iron ore exports from Goa for FY09 was estimated to be at 45.5 million tonnes which was 15% higher than that of the preceding year. Goa accounts for nearly 45% of the country’s total iron ore exports and the future promises to be interesting with the Chinese government’s $585 billion stimulus package that has revived many steel mills that have been shut.

“There has been a substantial increase in the purchase of Australian and Brazilian high grade ore in China. Since Goa’s low grade ore is blended, demand has also increased. We expect the trend to continue this fiscal,” added Mr. Salgaocar.

Goa’s mineral deposits of 55-62 FE content is said to have no takers in India due to availability of high grade iron ore in other parts of the country. Companies here mainly depend on the Chinese and Japanese markets. Prices for Goa’s low grade ore have dropped 60% since FY 08 and trades between $11 to $17 per tonne.

Source: Economic Times