SteelMint has learned from the market sources that Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled an auction for sub-grade iron ore fines on 11th Apr’19. Total quantity put under the auction was 200,000 MT fines (Fe 58%). The material offered was from Gandhamardan and Koira mines. Traders were restricted to take part in this auction.
As per sources, lot offered from Gandhamardhan mines received flat bids (at base price of INR 550/MT) and 60,000 MT was booked out of offered quantity of 100,000 MT.
However, the lot offered from Koira mines managed to receive bids at INR 50-100/MT above the base price of INR 550/MT with entire quantity getting booked. Base price mentioned is on ex-mines basis inclusive of Royalty.
State-owned miner – Odisha Mining Corporation (OMC) is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.
EC limit at Daitari mines is proposed to be increased to 6 MnT p.a. from current EC of 3 MnT pa. On similar lines, EC limit at OMC’s Kurmitar mines is proposed to be increased from current 2.4 MnT pa to 6 MnT pa.
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