State-owned miner Odisha Mining Corporation (OMC) has scheduled an iron ore fines e-auction on 8 Jul’21. The total quantity to be auctioned has been revised to 1.06 mn t as against the previously announced 799,000tonnes (t). The material to be offered will be from OMC’s Gandhamardan, Daitari, Koira, Jilling, Tiring Pahar and Guali mines.
The base price for the auction has been increased by upto INR 500/t as against thebase price of the last fines e-auction conducted on 10th May’21.
Base price comparison of iron ore fines e-auction
Base prices in INR/t on ex-mines basis; including royalty
qty in t
Source: SteelMint Research
Odisha iron ore prices have remained supported by tighter merchant availability. SteelMint’s weekly iron ore fines Fe 63% index stands at around INR 10,200/t, up by INR 800/t m-o-m.Tight material availability in Odisha’s merchant market and fixed offers by Odisha’s leading iron ore miners have pushed a few eastern India-based mills to shift their sourcing pattern.As per sources, eastern India-based buyers have started sourcing iron ore from Karnataka, as it is cheaper, despite higher freight rates, than buying from the Odisha miners.
OMC emerged as the largest merchant miner in Odisha in FY21 with 13.30 mn t of production against 12.38 mn t in the previous fiscal (FY’20), a growth of 7% year-on-year.Odisha Mining Corporation (OMC) has applied to the Union Ministry of Environment, Forests and Climate Change (MoEFCC) for expanding the annual production capacity of the company’s Guali iron ore mine in Odisha to 30 mn t per annum.
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