Friday 08 November 2024 - 00:02

Date: 18 December 2018 , 01:36

News ID: 2956

NEWS SERVICE: MINES and MINERALS

India: NMDC Cuts Iron Ore Base Prices in Karnataka E- Auctions Despite Mining Suspension

NMDC has reduced base prices in Karnataka e-auctions by INR 200/MT in fines & INR 100/MT in lumps for Dec’18.

India's largest iron ore miner - National Mineral Development Corporation (NMDC) has announced a reduction in its floor prices of Karnataka e-auctions. Iron ore base prices at NMDC Kumaraswamy has decreased prices by around INR 200/MT in fines and INR 100/MT for lumps.

NMDC Kumaraswamy has decreased fines (Fe 63.2%) base price by around INR 200/MT to around INR 2,819/MT (basic) against last assessment INR 3,013/MT. Similarly, for Fe 64% lump prices have also decreased by around INR 100/MT to around INR 3,451/MT (basic) against last assessment INR 3,550/MT. All prices mentioned are basic. Royalty and other taxes extra.

At the beginning of this month NMDC, Chhattisgarh had reduced the iron ore prices by INR 200-360/MT for Dec’18.

Why have prices come down?

--C-DRI prices in Bellary declined by INR 800/MT M-o-M to INR 20,800/MT as against INR 21,600/MT last month.

-- Few private miners in Karnataka have cut prices. Ramanadurga Iron Ore Mine cut base prices for Fe 65% fines to INR 2625/MT on 05 Dec’18 against INR 2850/MT on 23rd Nov auction.

Iron ore operations are still on hold at NMDC’s Donimalai mine which was recently renewed lease. On 3rd Nov’18 NMDC lease got expired and was later renewed for the next 20 years.

State govt has asked NMDC to pay 80% premium on iron ore sale value from Donimalai to the Karnataka state Govt. NMDC India’s biggest iron ore mine 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.

source: SteelMint