India: OMC to Auction 530,000 MT Iron Ore; Lowers Lump Base Price
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Odisha Mining Corporation has scheduled its next iron ore e-auction on 30th Nov'19. The auction will be conducted for 530,000 MT iron ore 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 of 530,000 MT, DR-CLO is 485,000 MT, 30,000 MT is lump and remaining 15,000 MT is low grade fines.
Miner has reduced base price of lumps by INR 150-300/MT from all its mines against the base price of last e-auction conducted on 30th Sep'19.
The base price for lump ore offered from Gandhamardhan mines reduced by INR 150-300/MT, for material from Koira mines base price cut by INR 300/MT to INR 2,800/MT. The price for material offered from Daitari mines decreased by INR 200/MT to INR 2,800 /MT.
The base price for low grade iron ore (Fe 56%) from Koira mines is at INR 700/MT.
| Mines | Size | Fe (%) | Bid Price as on 02 Aug'19 | Base Price as on 30th Sep'19 | Bid Price as on 30th Sep'19 | Base Price as on 30th Nov'19 | Quantity Offered |
| (mm) | (INR/MT) | (INR/MT) | (INR/MT) | (INR/MT) | (MT) | ||
| Gandhamardan | 10-40 | 62% | 2,850 | 2,600 | 2,600 | 2,300 | 195,000 |
| 10-180 | 65% | 2,150 | 1,900 | 2150/2100 | 1,750 | 30,000 | |
| Kurmitar (Koira) | 10-40 | 62% | 3,350 | 3,100 | 3,100 | 2,800 | 200,000 |
| Kurmitar (Koira) | fines | 56% | - | - | - | 700 | 15,000 |
| Daitari | 10-40 | 62% | 3,250 | 3,000 | 3,000 | 2,800 | 90,000 |
| Total | 530,000 | ||||||
Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research
In the last lump e-auction held on 30th Sep'19, nearly 23% (183,000 MT) of material fetched bids. The auction fetched flat bids except the lot of 10-180 mm offered from Gandhamardhan which received bids higher by INR 200-250/MT.
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.
