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

India's largest iron ore miner - National Mineral Development Corporation (NMDC) has announced a rollover in floor prices for upcoming Karnataka e-auctions scheduled on 29th Apr'19. Iron ore base prices roll over for both fines & lumps at NMDC Kumaraswamy.

NMDC has kept fines (Fe 63%) base price from Kumaraswamy mines at INR 2,540/MT (basic) in line with last assessment. Similarly, for Fe 63.8% lump prices at INR 3,030/MT (basic). All prices mentioned are basic, royalty and other taxes extra.

At the beginning of this month, Company had reduced iron ore base prices at NMDC Kumaraswamy by around INR 150/MT in both fines and lumps.

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.