India: NMDC's iron ore mines operation, dispatch return to normalcy

• Normalcy returns in material transportation
  
  
• NMDC hikes iron ore prices for June delivery
  
  

The slowdown by NMDC workers has been resolved following successful negotiations addressing their demands for a wage hike. The mining company's management held several meetings with the unions to resolve the wage conflicts. Consequently, normal operations have resumed across all units, and material dispatch via rake movement has restarted, ensuring the continuation of essential supplies.

The recent agreement made a major milestone in terms of stability and productivity within the NMDC.

What was the workers' demand?

The conflict primarily revolves around wage revisions. Normally, NMDC revises wages every five years, but the latest revision, due since January 2022, had been a point of conflicts. Initially, the management proposed a wage increase from 9% to 12%, which was rejected by the unions that are demanding a hike of over 17%. However, recent talks indicate that the unions may have softened their stance as per the sources.

Rake movements under normalcy

During the strike movement of rakes was disrupted leading market under pressure. Under normal circumstances, NMDC operates 18-20 rakes per day. However, during the strike, this has dwindled to 7-8 rakes per day.

Currently, the issue has been resolved, and the giant miners dispatched 17 rakes from Bailadila hills and 5 rakes from Karnataka yesterday, as per sources report to BigMint.

Price revision by the miner:

NMDC had increased list prices of iron ore fines and calibrated lump ore today by INR 250/t ($3/t) and INR 350/t ($4/t) respectively, BigMint learnt from reliable sources. The company's effective prices are effective from 28 May 2024. The miner has fixed prices of DR CLO (10-40mm, Fe67%) at INR 7,520/t ($90/t) and of iron ore fines (-10mm, Fe64%) at INR 5,610/t ($67/t) on FoR basis from its Bacheli complex. Prices include royalty, DMF and NMET charges.