On March 20, NMDC is to offer iron ore (fines and calibrated lumps) from its Kumarswamy mines in the state of Karnataka.
A total of 148,000 MT of the raw material will be e-auctioned in the state, which is facing an acute crisis regarding sufficient availability of ore.
Ore to be offered:
fines: 68,000 MT
calibrated lumps: 80,000 MT
Royalty 10%, VAT 5.5% (on auction price and royalty), are applicable.
The state owned miner is performing well in e-auction in terms of iron ore fines sales due to good demand from Pellet makers and as steel industries operational in Karnataka are dependent on NMDC for availability of the raw material.
Whereas, as far as lumps is concerned, only 40% of its material was taken away in the first advance e-auction, on March 8, from Donimalai mines.
And, on the same date, through another e-auction, from Donimalai and Kumarswamy mines, 30% of its lumps was sold out.
A number of factors, most importantly, that NMDC is charging high for lumps, at Rs 4,322/MT-Rs 4,522/MT has resulted in low sales.
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