38% iron ore sold in the re-auction conducted on 08 Oct’15. The company reduced base prices upto INR 300/MT for the re-auction.
Odisha Mining Corporation (OMC) had rescheduled an e-auction for 400,000 MT iron ore (360,000 MT lump & 40,000 MT fines) conducted on 08 Oct’15. The company received weak response and only 152,400 MT iron ore was sold.
Material was offered from Koira and Gandamardan Mines. Participants showed buying interest for only Koira lumps and rest all the material remained unsold.The material was sold almost in the range of base prices quoted by the company. For this e-auction, the company reduced base prices for Koira Lumps (10-40 mm) by INR 300/MT.
Buyers show lesser interest for OMC material as it is costlier than that of private miners. In addition, the state govt fixed new transport charges to reduce the cost of transportation for state based steel mills.
The whole lot of Gandhamardan Mines remained unsold. This time, the company reduced base prices for Gandhamardan lump (10-40 Fe 62%) by 2% and offered at INR 2,350 MT.
Till now, the last two e-auctions conducted on 26 Sept’15 (for 698,000 MT iron ore) and 08 Oct’15 (for 400,000 MT iron ore) could not be able to fetch good response. If the situation persists, the company may reduce the base prices further and re-schedule the e-auctions.
Result of OMC iron ore e-auction held on 08 Oct’15
| Mines | Size (mm) |
Fe (%) |
Base Price | Offered Qty (MT) | Allotted Qty (MT) |
| Koira | 10-40 | 62 | 2,200 | 270,000 | 152,400 |
| -10 | 62-60 | 900 | 60,000 | – | |
| Gandhamardan | 10-40 | 62 | 2,350 | 70,000 | – |
| 10-180 | 65 | 2,000 | 20,000 | – | |
| Total | 400,000 | 152,400 | |||
Qty in MT
Base & bid prices in INR/MT on ex-mines basis; inclusive of royalty
Source: SteelMint Research
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