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

India's largest iron ore miner - National Mineral Development Corporation (NMDC) has increased floor prices by around INR 200/MT in both lumps and fines (depending on grades) for Karnataka e-auctions to be held today (08th Jan'20).

NMDC fines (Fe 65.24%) base price from Kumaraswamy mines is to INR 2,672/MT (basic), up by INR 212/MT against the last e-auction at INR 2,460/MT.

The prices for Fe 64.8% lump is up by INR 204/MT to INR 3,114/MT (basic) as against previous e-auction price at INR 2,910/MT. All prices mentioned are basic, royalty and other taxes extra.

Last week the miner had announced a similar quantum price hike from its Chhattisgarh mines as well.

NMDC is certain regarding the renewal of the Donimalai mining lease and its early resumption, as per a tweet of Mr. Baijendra Kumar, Chairman-cum-Managing Director, NMDC. Also, as per NMDC Chairman, the extension of Donimalai is sub judice in Mine Tribunal and it has stayed all auction-related activities of the Karnataka government.

As per the amendments made in the Mining and Mineral Development Act by the Central government, it is mandatory for state governments to renew public sector mining leases.
As per reports, the Karnataka government is of the view that the new amendment mining law will not be applicable to NMDC, as its lease to mine at Donimalai has already been canceled. However, NMDC has not received any communication from the Karnataka government on the non-applicability of recent amendments on the extension of mining leases.