OMC’s Chrome ore e-auction, which is scheduled on 17 Nov, 2014, will decide price for long-term linkage to companies.
Odisha mining corporation (OMC) will conduct e-auction for only 13,500 MT of friable and 1,000 MT of concentrate Chrome ore on 17 Nov, 2014. Both the inside & outside buyers can participate in this auction.
This time only lesser amount of Chrome ore has been kept for e-auction and according to sources the price discovered through this e-auction may be used for deciding price for the long-term contracts with Ferrochrome companies. There has been 2,100 MT of +54 grade friable ore kept for auction and the floor price has been fixed at INR 12,052/MT. Similarly, 4,200 MT of 52-54 grade friable ore on offer and the floor price is INR 11,606/MT.
On the other hand, there is 700 MT of 48-40 grade Chrome concentrate has been on offer and the floor price is INR 9,649/MT. Last month, the government has decided to enter into long-term contracts with Chrome using companies for supply of Chrome ore. The price of the Chrome ore would be decided on the basis of the national level e-auction. However, the government is yet to sign any long-term contracts with the companies.
According to sources, a government panel may meet on 15 Nov, 2014 to decide the amount of the Chrome ore to be supplied to each company. Last month, while clearing the proposal to supply raw material to companies on long-term basis, the state government has constituted the ore linkage committee headed by industry secretary Vishal Dev with OMC’s MD, Director of mines and CMD of Industrial Promotion and Investment Corporation (IPICOL) as members.
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