State-owned commercial mining company, Odisha Mining Corporation’s (OMC), e-auction for iron ore lumps today received moderate participation, with 507,000 t of iron ore, or 74% of 687,000 t of material on offer, getting booked. The bids in the auction edged lower by around INR 1,050/t against bid price of last e-auction held on 2 June’21.
Limited acceptance at higher iron ore offers, the decline in global prices and decline in domestic pellet offers have resulted in a decline in domestic iron ore prices.
The base price at the auction had been raised by up to INR 2,860/t as against that of the last e-auction. The base price was recorded lower by around INR 1,000/t against the bid price at the last e-auction.
With 13.3 mn t of iron ore production in FY’21, OMC had emerged as the leading merchant miner in Odisha. The state PSU miner could also emerge as the largest iron ore producer in Odisha with a consolidated capacity of 34 mn t/year, as per SteelMint estimates, especially after it bagged key iron ore mines following months of non-production subsequent to the Odisha auctions in 2020.
OMC reserves about 30% of its annual production for auctions, with the rest earmarked for long-term linkage customers.
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