India: NMDC Reduces Iron ore Base Price for Karnataka E-Auctions
...
India's largest iron ore miner - National Mineral Development Corporation (NMDC) has announced a reduction in floor prices for today’s Karnataka e-auctions. Iron ore base prices at NMDC Kumaraswamy have come down by around INR 150/MT in fines and INR 300/MT for lumps.
NMDC Kumaraswamy has decreased fines (Fe 62.7%) base price by around INR 150/MT to INR 2,264/MT (basic) against last assessment INR 2,416/MT. Similarly, for Fe 64% lump prices have also decreased by around INR 300/MT to around INR 2,809 /MT (basic) against last assessment INR 3,106/MT. All prices mentioned are basic. Royalty and other taxes extra.
| NMDC Kumarswamy E-Auction | |||||
| Iron Ore Base Prices for Feb'19 (INR/MT) | |||||
| Fines Grade (%) | Price | Change | Lump Grade (%) | Price | Change |
| 62.7 | 2,264 | -152 | 64.2 | 2,835 | -299 |
| 62.4 | 2,229 | -149 | 64 | 2,809 | -297 |
Base prices mentioned are basic
Source: SteelMint Research
NMDC (National Mineral Development Corporation) - India's largest iron ore mine had approached the Karnataka High Court for an urgent hearing on NMDC Donimalai lease in Dec’18. Recent schedule its hearing for the matter in High Court on Feb 11th, 2019. Before this, there are series of hearings which got postponed in the court on 10 Jan, 23 Jan & then on 28 Jan’19.
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.
At the beginning of this month NMDC, Chhattisgarh had reduced the iron ore prices around 11% for Feb’19.
