Steel Authority of India Limited (SAIL) conducted an e-auction today for 200,000 t iron ore fines (Fe 62.5%) from its Bolani mines, Odisha. The company had set the base price for the auction at INR 2,000/t (loaded to wagon, taxes extra). The auction received a good response with the entire quantity getting booked at INR 2,200/t, SteelMint learned from its sources. The auction witnessed active participation from five parties.
In its last auction conducted on 20 Aug’20 did not receive any bids in an e-auction conducted today for 40,000 t iron ore fines (Fe 61.3%) from its Barsua mines, Odisha. The company had set the base price for the auction at INR 2,000/t (loaded to wagon, taxes extra). The high base price was the key reason for buyers not putting in bids, an auction participant told SteelMint. The final price for SAIL iron ore fines put up in the auction would be total INR 2,950/t after adding royalty, DMF and NMET payouts if the cargo was sold at the base price of INR 2,000/t.
SAIL pays royalty rates applicable to 64% lump for Bolani & Barsua fines due to technical issues related to ore stacking at these mines.
The company has further extended due dates for auction of sub-grades iron ore fines, dump & tailing, as permission is still awaited from respective state govt, SteelMint learnt from its sources.
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