India: 60% Iron Ore Lump Booked in OMC E-auction

Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore lump e-auction today (2nd Aug’19). Total quantity put under the auction was 457,000 MT iron ore lumps. Out of the total quantity nearly 60% (275,000 MT) of material fetched bids.

The material was from Gandhamardan, Daitari, and Koira mines. The material in the auction fetched flat bids i.e at base price. Traders were restricted to take part in this auction.

Out of the total quantity of 216,000MT offered from Koira mines, 179,000 MT received bids. Gandhamardan mines received bids for about 18% (24,000 MT) of 10-40 mm lumps. Daitari mines sold about 62% (56,000 MT) of the total 90,000 MT ore.

The miner had reduced base prices for the auction by INR 100/MT from all its mines against the base price of previous e-auction conducted on 03rd June'19. Out of the total quantity, 441,000 MT was DR-CLO and remaining 16,000 MT is lump ore.

Major buyers in the e-auction were Jai Balaji, MESCO, MSP Sponge, Monnet, Bhaskar Steel, Sunil Sponge etc.

OMC iron ore production for the month of June’19 recorded at 1.05 MnT, up 30% as against 0.81 MnT in May’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.