Directorate of Mines, Odisha govt. has issued a notification on 24 Feb’16 regarding collection of District Mineral Foundation Funds (DMF).
In the letter issued to all the Director of Mines, it has been decided to start collection of DMF and National Mineral Exploration Trust (NMET) w.e.f 25 Feb’16.
All the miners are therefore requested to ensure collection of DMF & NMET as per the issued guidelines.
The DMF contribution will be collected at 30% of royalty (in case of mining leases granted before 12 Jan’15) and at 10% of royalty (in case the mining leases are granted after 12 Jan’15). And the contribution towards NMET is 2% of royalty.
Market participants shared that this would result in rise in Odisha iron ore prices by about INR 100-150/MT. Currently the prices in Odisha are-INR 2,050-2,150/MT for 5-18 mm (Fe 63%) and prices of fines (Fe 63% ) are around INR 1,250-1,400/MT (Prices are ex-mines & inclusive of royalty).
Link to the letter issued by Odisha govt over collection of DMF & NMET
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