Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore e-auction today i.e. 05 Sep’18. Total quantity put under the hammer was 465,000 MT iron ore fines. The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction.
According to market sources report to SteelMint, the entire quantity of material put to auction was sold.
Bids for fines offered from Gandhamardan mines stood higher by INR 200/MT over the set base price of INR 1,300/MT. Material offered from Daitari mines observed an increase in bids by INR 100/MT against base price which was INR 2,400/MT. The fines offered from Koira mines witnessed bids up by INR 100-150/MT.
OMC had raised base prices by INR 200-320/MT against its previous fines auction conducted in July. Odisha based major merchant miners have increased fines and lump prices by INR 600-700/MT within a short span of time in the last week of Aug’18.
Base price and Bid Price comparison of OMC Iron ore e-auctions-
| Mines | Size | Fe (%) | Base Price as on 09th July’18 | Base Price as on 05th Sept’18 | Bid Price as on 05th Sep’18 | Quantity |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,100 | 1,300 | 1,500 | 150,000 |
| Kurmitar (Koira) | -10 | 62-60 | 850 | 1,150 | 1,250-1,300 | 200,000 |
| Daitari | -10 | 64-62 | 2,080 | 2,400 | 2,500 | 115,000 |
| Total | 465,000 | |||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
According to the recent update on OMC website, the company has witnessed production at 7.92 MnT in FY’18, up 24% Y-o-Y as against 6.37 MnT in FY’17. OMC contributes around 8-10% of total state’s iron ore production. OMC’s iron ore production is witnessing increase post increased output from its Gandhamardhan mines.
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