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Print[Ferro-alloys.com]Advance e-auction for NMDC's iron ore has started off on a promising note with steel mills lapping up the entire lot of iron ore fines put on auction last month. With the new system coming into place, the public sector miner has increased production of iron ore at two of its mines in Bellary district, giving much needed relief to steel mills.
The first ever advance e-auction, held on March 8, witnessed bidding for close to half a million ton of iron ore by large steel mills. Most of the producers including JSW Steel, Kalyani Steel, Mukand, BMM Ispat and Janaki, among others, participated in the auctions.
However, steel mills were not keen to bid for iron ore lumps and some lots remained unsold.
Since the commencement of the advance e-auctions, the iron ore production of NMDC at its Donimalai mines has almost doubled to 450,000 tons a month. With this, its monthly iron ore production from Donimalai and Kumaraswamy mines put together has increased to 800,000 tons.
The advance e-auction will help NMDC to evacuate iron ore in a time-bound manner and enable steel mills to get smooth supply of iron ore.
The floor price for the ore auctioned is indicated by NMDC. However, the Monitoring Committee is at liberty to appropriately modify the floor price for the lots, which remain unsold in two or more auctions. The first advance auctions witnessed a floor price of Rs 2,400-2,500 a tonne for iron (Fe) ore fines with 61-64 per cent Fe range. The lumps were priced at Rs 4,500 a ton.
Meanwhile, seven mining companies under Category A have resumed mining operations and fresh iron ore has started coming in for e-auctions. These mines are producing about 250,000 tons every month.
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