On the16th of January, NMDC is to offer 3,52,000 MT of iron ore through e-auction to steelmakers based in the state of Karnataka, from its Donimalai and Kumarswamy mines.
The total quantity of iron ore includes 52,000 MT of iron ore fines and 1,00,000 MT of iron ore lumps from Donimalai mines and 2,00,000 MT of iron ore calibrated lumps from Kumarswamy mines.
NMDC was able to sell out only 35% out of 3,76,000 MT of iron ore in the last e-auction in Karnataka, which was on the 5th of January.
It is not feasible on the part of steelmakers in Karnataka to buy iron ore from the state of Odisha on account of high freight charges of around Rs 2,500.
Though, the alarming situation of iron ore unavailability exists in Karnataka and Goa, it is difficult to buy the expensive high grade raw material from NMDC's e-auction and bear losses due to increase in cost of production.
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