CEC won't ask NMDC to cut Iron ore lumps prices

In a meeting held on May 22, in presence of officials of Karnataka Sponge iron manufacturers Association (KSIMA), Karnataka based steelmakers and officials from department of mines and geology, Central empowering Committee (CEC) turned down the request put forward by Sponge iron manufacturers to ask NMDC for lowering its iron ore prices, especially for lumps offered through e-auctions.

Supreme Court appointed CEC said ““we will not intervene in internal issues of NMDC nor we will enforce on anybody. We do not understand the market dynamics and we have no mandate to direct them on bringing down the prices.”

CEC stated that it was not responsible for fixing prices and disagreed to ask the state based Karnataka miners to cut iron ore prices for e-auctions and to produce a certain sized lumpy ore that would be of an advantage to Sponge iron producers.

Earlier, before imposing ban on mining, CEC has asked KSIMA to submit details of iron ore produced by miners so as to study the matter and direct them to cut prices for benefit of Sponge iron makers.

About 70% of the Sponge iron units in the state are non operational and the rest are running at quite low capacities.

Monitoring Committee has been asked by CEC to submit about 90% of the iron ore price sold directly to miners at e-auctions.

Procurement of lumps has come down drastically in NMDC's e-auction as it is not viable for the sponge iron units and steelmakers to use expensive lumps.