After the State Government has decided to allow disposal of the stock of ore raised up to 2 October, 2012, Iron ore prices have come under pressure.
The above decision has been taken by the Odisha government looking at demand for raw materials by the industrial units set up in the state.
Most of the mines were asked to stop operations in the month of October 2012 due to violation of environmental laws.
Serajuddin Mines and Co. – one of the prominent miner in Odisha has lowered its Iron ore fines prices by Rs 300 ($5.5) per tonne w.e.f 22 February; lumps prices have not been changed.
Current Ex-Mines prices for Fe% 63 (+/-0.5%) Iron ore fines stands at Rs 1,600/MT.
The prices loaded to wagons, railway siding Ex-Nayagarh and Ex-Juruli is Rs 1,960/MT and Ex-Banspani is Rs 2,020/MT.
(All the above rates are inclusive of Royalty, applicable taxes extra)
Previous to this, Essel Mining and other merchant miners also lowered fines prices by Rs 200-300 per tonne.
Either manufacturers of Pellet or large plants like Essar and JSW are buyers of Iron ore from Odisha, exports are still not feasible at these prices.
Millions of tons of Iron ore were stockpiled at different places with the change of Policy Guidelines on Second or Subsequent Renewal of Mining Leases with effect from 3 October, 2012.
Issuing an order in this regard, the Department of Steel & Mines (DoSM) has stated that the stand alone mines which awaited second and subsequent renewal but operated under the deemed extension will be allowed to release the stocks raised before 3 October,2012.
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