India: OMC to auction 370,000t iron ore fines
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OMC has scheduled its next iron ore fines e-auction on 3rd July'20. The auction is being conducted for 370,000 t iron ore fines. Major portion of material, contributing more than half of iron ore put to auction is from Gandhamardan mines at 195,000t, followed by 135,000t from Daitari mines and remaining 40,000t from Koira mines. The base price of the fines put to auction is yet to be announced.
OMC iron ore e-auction details
| Mines | Size | Fe (%) | Base Price as on 30th Apr'20 | Bid Price as on 30th Apr'20 | Quantity offered as on 3rd July |
| (mm) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | -10 | 60-62 | 1150 | - | 188,000 |
| -10 | 64-62 | 1500 | - | 7,000 | |
| Kurmitar (Koira) | -10 | 62-60 | 1,200 | 1,200 | 40,000 |
| Daitari | -10 | 64-62 | 2,000 | 2,000 | 90,000 |
| -10 | 60-62% | - | - | 45,000 | |
| Total | 370,000 | ||||
Base prices in INR/t on ex-mines basis; including royalty
Source: SteelMint Research
In the last lump e-auction held on 1st June'20, auction fetched good participation with 515,000 t (90%) being booked out of 571,500 t iron ore fines put to auction. Bids in the auction increased upto INR 900/t over the set base price.
Iron ore production may increase in Odisha, over the July-September quarter as new leaseholders complete various procedural formalities and start operations. Production has slowed considerably since 1st April as mining leases of previous leaseholders expired on 31st March 2020.
