India: NMDC Hikes Base Price in Karnataka Iron Ore E-auctions

India's largest iron ore miner - National Mineral Development Corporation (NMDC) has announced an increase in floor prices for upcoming Karnataka e-auctions. Iron ore base prices at NMDC Kumaraswamy mine have been increased by around INR 250/MT (USD 3.6). NMDC fines (Fe 63%) base price from Kumaraswamy mines has picked up to INR 2,781/MT (basic) as against being last assessment at INR 2,540/MT (basic). The prices for Fe 63.8% lump prices increased to INR 3,275/MT (basic) against last assessment at INR 3,030/MT. All prices mentioned are basic, royalty and other taxes extra.

The price hike is attributed to increase in global iron ore price, which are hovering around five years high. Spot iron ore fines Fe 62% index has picked up to USD 108/MT, CFR China yesterday, up by 8% W-o-W.

Towards last weekend, NMDC Ltd announced a hike in its iron ore prices from Chhattisgarh mines for June deliveries. The miner raised Baila lump and fines price by INR 250/MT. Revised prices of Baila lump ore is at INR 3,100/MT, Baila iron ore fines are at INR 2,860/MT and DR CLO is at INR 3,600 /MT. All prices mentioned are basic, royalty and other taxes extra.

Iron ore operations are still on hold at NMDC's Donimalai mine, which had 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. The case was filed in the high court and both the side had kept their conclusive remark in the High Court. Judgement is still awaited, no date has been revealed.

NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.