NMDC hikes lump ore rate by Rs 100 per tonne; Rs 200 for fines

The country's largest iron ore miner NMDC on Friday hiked the prices of lump ore by Rs 100 a tonne and Rs 200 in case of fines with immediate effect.

The price hike came at a time when steel prices in India are trading at an all-time high. Iron ore is one of the key raw materials used in the manufacturing of steel, and any movement in the prices of the mineral has a direct impact on the rate of steel.

In a regulatory filing, the company said it has fixed the prices of per tonne lump ore at Rs 6,100 and that of fines at Rs 5,160 a tonne.

While lump is high-grade iron ore having Fe (iron) content above 65 per cent, fine is inferior grade ore, which needs beneficiation.

The revised prices are effective from April 1, 2022, and exclude royalty, District Mineral Fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee, and other taxes, the company said.

NMDC had announced its last price revision on March 8, when it had fixed the prices of lump ore and fines at Rs 6,000 per tonne and Rs 4,960 per tonne, respectively.

NMDC, under the Ministry of Steel, is the country's largest iron ore producer and supplier. It recently posted a record production of over 40 million tonne.

The company, which has been in the business of mining iron ore for over six decades, produces iron ore from its three complexes in the country -- one in Donimalai in Karnataka and two in the Dantewada district of Chhattisgarh.

NMDC has set an ambitious target of producing 100 MT of iron ore by 2030.