India: 51% Material Booked in OMC Iron Ore Fines E-Auction
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Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore fines e-auction today (12th Sep'19). Total quantity put under the auction was 384,500 MT iron ore fines. Out of the total quantity nearly 51% (196,500 MT) of material fetched bids.
The material was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction. The material from Gandhamardan and Daitari mines received flat bids at INR 1,100/MT and INR 2,100/MT respectively. However, material from Koira mines received bids at INR 1250/MT, i.e up by INR 200/MT against base price of INR 1050/MT.
Out of the total quantity of 180,000 MT offered from Gandamardan mines, only 123,000 MT received bids. Daitari mines sold 69,000 MT (35% of total) out of total 200,000 MT offered. However, Koira mines received bids for entire quantity of 4,500 MT put to auction.
The miner had reduced base prices for the auction by upto INR 350/MT.
Price comparison of OMC iron ore E-auctions
| Mines | Size | Fe (%) | Bid Price as on 12th july'19 | Base Price as on 12th Sep'19 | Bid Price as on 12th Sep'19 | Quantity Offered | Quantity Sold |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,350 | 1,100 | 1,100 | 180,000 | 123,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,250 | 1,050 | 1,250 | 4,500 | 4,500 |
| Daitari | -10 | 64-62 | 2,450 | 2,100 | 2,100 | 200,000 | 69,000 |
| Total | 384,500 | 196,500 | |||||
Bid prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC iron ore production for the month of June'19 recorded at 1.05 MnT, up 30% as against 0.81 MnT in May'19.
OMC is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.
EC limit at Daitari mines is proposed to be increased to 6 MnT p.a. from current EC of 3 MnT pa. On similar lines, EC limit at OMC's Kurmitar mines is proposed to be increased from current 2.4 MnT p.a to 6 MnT p.a.
