NMDC is to offer a total of 6,88,000 MT (18 Lots) of iron ore through e-auction from its Donimalai and Kumarswamy mines in the state of Karnataka on December 28.
The total quantity of 6,88,000 MT includes: iron ore lump 88,000 MT, iron ore calibrated lump 1,00,000 MT, iron ore fines 2,76,000 MT, iron ore low grade fines 1,00,000 MT.
From Donimalai Mines: A total of 2,40,000 MT of iron ore is to be e-auctioned, which includes 888,000 MT of iron ore lump, 52,000 MT of iron ore fines and 1,00,000 MT of low grade iron ore fines.
From Kumarswamy Mines: A total of 2,48,000 MT of iron ore is to be e-auctioned, which includes 1,00,000 MT of iron ore calibrated lump and 48,000 MT of iron ore fines.
M/s Mineral Enterprises M.L.: A total of 2,00,000 MT of iron ore fines is to be e-auctioned.
Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable.
According to a senior official at NMDC, “We are able to sell out more of iron ore fines as compared to iron ore lumps due to low demand from sponge iron manufacturers.
Sponge iron units in Bellary prefer to use more of pellet to produce sponge iron.
The last e-auction by NMDC in Karnataka fetched similar bids as floor price and purchases were made as per requirement only due to dull steel markets.
It is slightly difficult to predict the result of the upcoming e-auction as steel demand and prices has started improving”.
Leave a Reply