According to the sources report to SteeMint, JSW Steel may increase iron ore imports for its Vijayanagar plant from Australian miners, owing to lack of iron ore availability hampered from NMDC Donimalai mines. Miner has temporarily abandoned iron ore production amid pending decision on the representation by the Karnataka Govt. As per information received by NMDC, Karnataka Cabinet has not taken any decision to cancel the lease of Donimalai to NMDC. NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.
Despite, Donimalai iron ore mines lease has already been extended by the Cabinet of Karnataka Govt. w.e.f 04th Nov’18 for the 20 years up to 03.11.2038 on payment of 80% of the average sale value as published by IBM. NMDC has also received the communication letter in this regard. NMDC has been on the 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, as per reports.
JSW Steel (Vijaynagar) source iron ore mostly from the domestic market itself
| JSW Steel Iron Ore Sourcing in Q1FY19 & Q2FY19 | |||
| Plant Name | Load State | FY19 (Q2) | FY19 (Q1) |
| JSW Steel (Vijayanagar) | Karnataka | 3.13 | 2.45 |
| Import | 2.00 | 1.83 | |
| Odisha | 0.06 | 0.41 | |
| Total | 5.19 | 4.69 | |
Source: SteelMint
Quantity in MnT
Provisional Data
Global iron ore fines prices fall- Spot iron ore fines (Fe 62%) prices recorded end of this week at USD 69/MT, CFR China, down by 8% on weekly basis as against a week before at USD 75/MT, CFR China.
Iron Ore Prices in Odisha soften-: Two major merchant iron ore miners namely Serajuddin Mines and Essel Mining have slashed iron ore offers this week and it is expected that other miners may also follow the suit.
Following iron ore prices soften in Odisha, major steel mills are expecting price correction from NMDC too for the month of December.
NMDC (National Mineral Development Corporation) is India’s largest iron ore miner with annual production of around 35.5 MnT p.a. in FY18. Out of this, 12 MnT was produced from NMDC’s mine in Karnataka, combining from Donimalai and Kumaraswamy.
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