India: OMC puts around 1 mn t iron ore lumps for auction; raises base price

Odisha's leading miner - Odisha Mining Corp (OMC) has scheduled its next iron ore e-auction on 2nd Dec'20. The auction is being conducted for 910,000 t iron ore lump. The miner has increased the base price by upto INR 1,600/t ($22) against last auction's base price held on 1st Oct'20. The material put under the hammer is from Gandhamardan, Daitari, Koira mines and Tiring pahar mines.

The miner has increased the base price of material offered from Daitari mines by INR 1,350/t. The base price for lumps from Gandhamardan mines increased by about INR 1,500/t. For the material put to auction from Koira mines the miner raised the price by INR 1,600/t.

OMC iron ore e-auction details

Base prices in INR/t on ex-mines basis; including royalty
Source: SteelMint Research

• SteelMint's Odisha iron ore index (10-30 mm, Fe 63%) lump has increased by INR 2,650/t m-o-m to INR 8,150/t ex-mines (including Royalty, DMF & NMET) on tight material availability in merchant market.
  
  
• In the last OMC lump e-auction conducted on 1st Oct'20, the miner had received an overwhelming response with entire quantity of 668,000 t being booked with hike in bids upto INR 1,850/t.
  
  
• OMC's iron ore production has picked up to 0.88 mn t in Oct'20 as against 0.62 mn t in Sep'20 due to resumption in production from its Gandhamardhan B block and commencement of operations at Tiring Pahar.
  
  
• OMC has recorded steady growth in iron ore production over the past years from 6 mn t in FY'16 to 12.4 mn t in FY'20.