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 300-400/MT in lumps and INR 100/MT fines (depending on grades) for Karnataka e-auctions to be held today (27th Jan'20).

The base price of NMDC fines (Fe 64.31%) from Kumaraswamy mines is INR 2,660/MT (basic), up by INR 102/MT against the last e-auction at INR 2,558/MT.

The base price for Fe 63.81% lump is up by INR 392/MT to INR 3,374/MT (basic) as against previous e-auction price at INR 2,982/MT. All prices mentioned are basic, royalty and other taxes extra. This is the second time in Jan'20 miner has increased iron ore prices from Karnataka e-auction. Towards the beginning of Jan'20, the miner had raised offers.

Last week, NMDC (C.G) has increased iron ore fines by INR 350/MT, Baila lump by INR 400/MT and DR CLO by INR 470/MT.

NMDC is certain regarding the renewal of the Donimalai mining lease and its early resumption. 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.