India: NMDC Raise Iron Ore Floor Prices for Jan'18 Karnataka E-auctions
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National Mineral Development Corporation (NMDC) has increased the iron ore base prices for Karnataka e-auctions to be held in Jan'18. The company has increased the prices by about INR 500/MT on monthly basis. Last month, the miner had raised lump prices by around INR 300/MT and fines prices by about INR 200/MT.
For Jan'18 base prices for NMDC Donimalai fines (Fe 60.2%) has been increased to INR 2,851/MT and lump (Fe 62.2%) - INR 3,311/MT.In Dec'17, the prices of the same material type were hovering at INR 2,432/MT and INR 2,864/MT.
The company has also announced price hike in iron ore prices by 22% for January deliveries in Chhattisgarh.
| Grade (Fe %) | NMDC Donimalai E-Auction - Iron Ore Base Prices for Jan'18 (INR/MT) | |||
| Fines | M-o-M | Lump | M-o-M | |
| 65 | 3,590 | +526 | 3,728 | +504 |
| 64 | 3,436 | +504 | 3,579 | +483 |
| 62 | 3,128 | +460 | 3,281 | +443 |
| 58 | 2,511 | +371 | 2,684 | +362 |
| 57 | 2,357 | +349 | 2,535 | +342 |
Base prices mentioned are basic
Source: SteelMint Research
NMDC produced 12 MnT iron ore from its Karnataka based mines in FY17. The miner accounts for nearly 45% share in state's iron ore production. It operates two mines in Karnataka state namely Donimalai and Kumaraswamy.
In Dec'17, Supreme Court announced enhancement of iron ore production cap to 35 MnT pa for A & B mining leases. With regard to Category 'A' & 'B' mining leases for 'District Bellary" the annual production cap for the district may be enhanced by 3 MnT to 28 MnT and wherein NMDC and MML will operate with maximum annual production (MPAP) ceiling of 12 MnT and 2 MnT for the year 2017-18 respectively and thereafter from 2018-19 these will also operate at the MPAP limit as per the approved R&R Plans subject to the overall limit of annual production fixed for the district, until further orders.
CEC suggested that there is a proposal for revision/increase of MPAP by taking into consideration the new infrastructure development including railway sidings and conveyor belt system which have been installed by NMDC.
