India: NMDC Keeps Base Price Unchanged for Today's Auction in Karnataka
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India's largest iron ore miner - National Mineral Development Corporation (NMDC) has kept base prices unchanged in today’s Karnataka e-auctions.
For the e-auction scheduled on 11th Dec 2018, iron ore base prices at NMDC Kumaraswamy decreased prices by around INR 200/MT in fines and INR 100/MT for lumps.
Fines (Fe 63.2%) at around INR 2,819/MT (basic) Similarly, for Fe 64% lump prices have also unchanged to around INR 3,451/MT (basic) against last assessment All prices mentioned are basic. Royalty and other taxes extra.
| NMDC Kumarswamy E-Auction - | |||||
| Iron Ore Base Prices for Dec'18 (INR/MT) | |||||
| Grade (%) | Fines | Change | Grade (%) | Lump | Change |
| 63.2 | 2,819 | 0 | 63.2 | 3,330 | 0 |
| 63 | 2,790 | 0 | 62.8 | 3,270 | 0 |
Base prices mentioned are basic
Source: SteelMint Research
As per the senior state-level officials, NMDC (National Mineral Development Corporation) - India's largest iron ore mine has approached the Karnataka High Court for an urgent hearing on NMDC Donimalai lease renewal pending decision on the representation by the Karnataka Govt. As per the reports, Court will hear the matter on Jan 10, 2019.
NMDC’s Donimalai mine which was renewed lease on 3rd Nov’18 for the next 20 years. But the State govt put the additional condition to pay 80% premium on iron ore sale value from Donimalai to the Karnataka state Govt. NMDC was in 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.
NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.
For its Chhattisgarh mines, the miner had made price correction twice in the month of December.
