India: OMC Reduces Base Price for Iron Ore Fines E-auction
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Odisha Mining Corporation has scheduled its next iron ore fines e-auction on 21st Oct'19, base prices decreased by INR 100/MT against the base price of previous e-auction conducted on 12th Sep'19.
The auction is conducted for 276,000 MT iron ore fines and the material put under the hammer is from Gandhamardan, Daitari and Koira mines. No traders shall be allowed to take part in the e-auction.
The miner has reduced base prices by INR 100/MT from all its mines. The base prices for Gandhamardan, Daitari and Koira stands at INR 1,000/MT, INR 2,000/MT, and INR 950/MT respectively.
Price comparison of OMC iron ore e-auctions-
| Mines | Size | Fe (%) | Bid Price as on 12th july'19 | Base Price as on 12th Sep'19 | Bid Price as on 12th Sep'19 | Base Price as on 21st Oct'19 | Quantity Offered |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1,350 | 1,100 | 1,100 | 1,000 | 105,000 |
| Kurmitar (Koira) | -10 | 62-60 | 1,250 | 1,050 | 1,250 | 950 | 21,000 |
| Daitari | -10 | 64-62 | 2,450 | 2,100 | 2,100 | 2,000 | 150,000 |
| Total | 276,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC iron ore production for the month of Aug'19 recorded at 30,496 MT, as against 464,693 MT in July'19.
OMC is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.
EC limit at Daitari mines is proposed to be increased to 6 MnT p.a. from current EC of 3 MnT pa. On similar lines, EC limit at OMC's Kurmitar mines is proposed to be increased from current 2.4 MnT p.a to 6 MnT p.a.
