Odisha Mining Corporation (OMC) has scheduled its next iron ore fines e-auction on 09 July’18 for which it has raised base prices by INR 50-190/MT.
Odisha Mining Corporation (OMC), a state-owned miner is to conduct next e-auction for 420,000 MT iron ore fines on 09 July’18. The material put under hammer is from Gandhamardan, Daitari and Koira mines. Traders have been restricted to take part in this auction.
The miner has increased the base prices for material being offered. The base price for material offered from Gandhamardan mines is increased by INR 190/MT (21%) and for Koira mines increase is INR 50/MT (6%) against the last fines e-auction held. The iron ore base price from Daitari mines is increased by INR 180/MT (9%) against the last fines e-auction held on 9th May’18.
Odisha based major merchant miners have increased fines and lump prices by INR 300/MT in July’18.
No traders shall be allowed to take part in the e-auction.
Base price comparison of OMC iron ore e-auctions-
| Mines | Size | Fe (%) | Base Price as on 07th Mar’18 | Base Price as on 09th May’18 | Base Price as on 09th July’18 | Change | Change | Quantity |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (%) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,000 | 910 | 1100 | +190 | +21% | 150,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,000 | 800 | 850 | +50 | +6% | 150,000 |
| Daitari | -10 | 64-62 | 1,900 | 1,900 | 2080 | +180 | +9% | 120,000 |
| Total | 420,000 | |||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC’s last e-auction was held on 05th June’18 for 280,000 MT iron ore lumps. Out of the total quantity, 82% of material received bids. The bids received by Daitari and Koira mines stood up by INR 700/MT and INR 600/MT respectively, while material from Gandhmardan mines received flat bids. Compared to its previous OMC iron ore lump e-auction conducted on 04 Apr’18, bids fetched stood higher for both Daitari and Koira mines by around INR 800/MT and INR 600/MT respectively. However, bids received by Gandhamardan mines were in line with previous lump e-auction.
According to the recent update on OMC website, the company has witnessed production at 7.92 MnT in FY’18, up 24% Y-o-Y as against 6.37 MnT in FY’17. OMC contributes around 8-10% of total state’s iron ore production.
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