India’s largest iron ore miner – National Mineral Development Corporation (NMDC) has announced a reduction in its today’s Karnataka e-auctions floor prices. Iron ore base prices at NMDC Kumaraswamy have decreased prices by around INR 320-330/MT in fines and INR 340–350/MT for lumps.
NMDC Kumaraswamy has decreased fines (Fe 62.7%) base price by around INR 331/MT to INR 2,416/MT (basic) against last assessment INR 2,747/MT. Similarly, for Fe 64% lump prices have also decreased by around INR 350/MT to around INR 3,106/MT (basic) against last assessment INR 3,451/MT. All prices mentioned are basic. Royalty and other taxes extra.
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NMDC Kumarswamy E-Auction
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| Iron Ore Base Prices for Jan’19 (INR/MT) | |||||
| Grade (%) | Fines | Change | Grade (%) | Lump | Change |
| 62.7 | 2,416 | -331 | 64.2 | 3,134 | -347 |
| 62.4 | 2,378 | -324 | 64 | 3,106 | -345 |
Base prices mentioned are basic
Source: SteelMint Research
As per the senior state-level officials, NMDC (National Mineral Development Corporation) – India’s largest iron ore mine has approached the Karnataka High Court for an urgent hearing on NMDC Donimalai lease renewal pending decision on the representation by the Karnataka Govt. As per the reports, Court will hear the matter on Jan 10, 2019.
NMDC’s Donimalai mine which was renewed lease on 3rd Nov’18 for the next 20 years. But the State govt put the additional condition to pay 80% premium on iron ore sale value from Donimalai to the Karnataka state Govt. NMDC was in negotiation with the Govt of Karnataka over its decision to impose an 80% premium on iron ore sales from Donimalai. As the company’s earlier license did not include the premium.
NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.
At the beginning of this month NMDC, Chhattisgarh had reduced the iron ore prices by INR 300-465/MT for Jan’19. This was the third prices cut by the miner in a month’s time.
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