Aditya Birla Group-owned – Essel Mining has increased iron ore fines and lump list price by INR 300/t ($4) and INR 500/t ($7) amid acute merchant availability in Odisha. Notably, this is the miner’s second price hike in Sept’20.
In Aug’20, the miner had increased prices by around INR 1,050-1,400/t for both fines and lumps. The miner has EC limit of 6 mn t pa from its Koira mines.
Odisha holds a 50% share in India’s total iron ore production. After the auction of 19 mining leases, only five of them have started production and the rest are either dormant or about to start producing.
All Ex-mines basis and include statutory payments for royalty, DMF & NMET,
*Loaded into the wagon
Source: SteelMint
Recent developments in Odisha iron ore mining –
- Guali mines controversy: Serious land and boundary related discrepancies in the DGPS map have become impediments to Jindal Steel and Power’s takeover of the Guali iron ore mines. In the absence of quick resolution, fresh production from this mine – that has an annual environmental clearance of 5.7 million tonne – could take a while.
Fourteen (14) out of 19 auctioned mines have not begun production under the new lessees. The government attributes this to logistical constraint and covid19 pandemic.
- OMC commences production from a new mine: Odisha’s state-owned miner- Odisha Mining Corporation (OMC) has commenced production at Tiring Pahar mines in Barbil, Odisha. The mine has an EC limit of 0.328 mn t pa and expects production of about 0.2 to 0.23 mn t for this year, SteelMint learned from its trade channels.
In another major development, the miner, towards early Sep’20, resumed production at its Gandhamardan block B mine. The mine has an EC limit of 9 mn t. The mining operations at this mine were hampered in the last few months, impacting miner’s overall production volumes. However, with the resumption in mining activities, production volumes are expected to pick up.
- OMC’s last auction fetched a sharp hike in bid prices – Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled an iron ore e-auction on 3rd Sep’20 for 492,000 t. The auction received an overwhelming response as the entire quantity has been booked along with a hike in bids upto 119%.
- SAIL iron ore fines auction up by INR 750/t ($10): Steel Authority of India (SAIL) today conducted an e-auction for 200,000 t iron ore fines (Fe 62.5%) from its Bolani mines in Odisha. The entire quantity put to the auction has been booked at INR 2,940-2,950/t, loaded to wagons, taxes extra over the et base price of INR 2,250/t as per the sources.
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