India: OMC to Auction 425,000 MT Iron Ore Lump; Hikes Base Price
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Odisha Mining Corporation has scheduled its next iron ore lump e-auction on 03rd June'19, base prices increased by INR 100/MT against the base price of previous e-auction conducted on 04th Apr'19.
The auction is conducted for 425,000 MT iron ore lumps 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.
Out of the total quantity, 410,000 MT is DR-CLO and remaining 15,000 MT is lump ore.
Odisha based other major merchant miners like Rungta, Serajuddin, Essel Mining etc had increased iron ore prices by INR 200-300/MT in last couple of weeks following hike in pellet offers.
In the last lump e-auction held on 04th Apr'19, the miner received flat bids. Out of the total quantity of 397,000 MT, the miner received bids for about 74% (295,000 MT) of material.
Price comparison of OMC iron ore e-auctions-
| Mines | Size (mm) | Fe (%) | Base Price as on 01 Feb'19 | Base Price as on 04 Apr'19 | Bid Price as on 04 Apr'19 | Base Price as on 03 June'19 | Quantity Offered (MT) |
| Gandhamardan | 10-40 | 62% | 3,050 | 2,850 | 2,850 | 2,950 | 135,000 |
| 10-180 | 65% | 2,350 | 2,150 | 2,150 | 2,250 | 15,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 3,550 | 3,350 | 3,350 | 3,450 | 200,000 |
| Daitari | 10-40 | 62% | 3,450 | 3,250 | 3,250 | 3,350 | 75,000 |
| Total | 425,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
OMC has achieved an increase in its iron ore production for FY'19 by 32% to 10.47 MnT as against 7.92 MnT in last fiscal year FY'18.
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.
