In FY14, total Iron ore allotted quantity amounted to 29.2 MnT, out of which production was about 18-19 MnT with additional 10 MnT sub grade ore, which was allowed to be auctioned by the Karnataka government.
Earlier in Jul’11, the Supreme Court had imposed Iron ore mining ban in Karnataka following allegations of illegal mining. The drastic outcome was that Iron ore production fell from 39 MnT in FY11 to merely 13 MnT in FY12. Subsequently, the apex court ordered resumption of mining activities in April, 2013 with a cap on production of 30MnT pa. Since then e-auctions have been continuing so far in the state.
Total allotted quantity amounted to 29.2 MnT in last fiscal year. Out of this, maximum comprised of Fines (11.59 MnT) followed by ROM (11.28 MnT), which also included sub grade ore and Lumps (6.35 MnT).
Quarterly Iron Ore Prices in Karnataka E-auctions
|
Material Type |
Fe (%) |
Quarterly FY14 Prices |
|||
|
Q1 |
Q2 |
Q3 |
Q4 |
||
|
Fines |
63 |
2,873 |
2,952 |
3,760 |
3,805 |
|
60 |
2,463 |
2,237 |
2,865 |
2,493 |
|
|
Lumps |
65 |
4,050 |
4,303 |
4,380 |
4,657 |
|
63 |
3,967 |
3,663 |
3,630 |
3,917 |
|
Basic prices in INR/MT
Prices are weighted average; provisional data
Source: SteelMint Research
The top three buyers were JSW Steel (17.2 MnT), BMM Ispat (2.04 MnT) & Xindia Steels (1.1 MnT).
Top 3 Iron Ore Buyers in Karnataka E-auctions
|
Company Name |
Allotted Qty |
Total |
||
|
Fines |
Lumps |
ROM |
||
|
JSW Steel |
6,744,000 |
3,416,000 |
7,018,000 |
17,178,000 |
|
BMM Ispat |
982,000 |
16,000 |
1,042,000 |
2,040,000 |
|
Xindia Steels |
620,000 |
|
472,000 |
1,092,000 |
|
Others |
3,246,000 |
2,920,000 |
2,751,000 |
8,917,000 |
|
Total |
11,592,000 |
6,352,000 |
11,283,000 |
29,227,000 |
Qty in MT (includes sub grade ore)
Source: SteelMint Research
There is slight improvement in situations at Karnataka. Production remains around 18-19 MnT. Out of this, 9 MnT is from NMDC and the rest from private mines. However, there are certain proposals pending with the Supreme Court for permission to increase the capacity. There is a possibility that 7 MnT extra could come-in if the Supreme Court approves the proposals in FY15.
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