India: NMDC Keeps Base Price Unchanged in Aug Karnataka Iron Ore E-auctions

India's largest iron ore miner - National Mineral Development Corporation (NMDC) has kept floor prices for upcoming Karnataka e-auctions unaltered in Aug'19.

NMDC fines (Fe 63%) base price from Kumaraswamy mines at INR 2,781/MT (basic).The prices for Fe 63.8% lump prices at INR 3,275/MT (basic). All prices mentioned are basic, royalty and other taxes extra.

Last month also NMDC had kept the iron ore fines and Lumps prices unchanged.

Sharp increase in production from Kumaraswamy mines- Company reported production of 2.35 MnT in Q1 FY20 against 1.81 MnT in the previous quarter. Iron ore sales from Kumaraswamy stood at 2.1 MnT in Q1 FY20. Company has EC limit of 7 MnT pa production in Q1 FY20.

In accordance with the decision of Hon'ble High Court on NMDC's Donimalai mines received in July, NMDC is in process of getting the other clearances done like Forest clearances and Environment Clearance etc. Thus at this point of time, due to the flood-like situation in Karnataka has slightly delayed the process of renewal and clearances, therefore, no fixed timeline has been revealed regarding the resumption of operations at Donimalai mines.

NMDC also has announced a rollover in its iron ore prices from Chhattisgarh mines for Aug deliveries.