OMC cuts iron ore prices by 40-50%

The Orissa government's largest PSU, Orissa Mining Corporation (OMC), today said it has decided to reduce iron ore prices by 40 to 50 per cent following lack of demand.

"We have decided to cut the prices of iron ore by 40 to 50 per cent depending on the quality and it would be implemented in the next four to five days," OMC Managing Director Santosh Sarangi said here.

The price of the high quality iron ore of Barbil mines with 65 per cent ore content would be reduced from Rs 5,602 per tonne to Rs 2,800 a tonne, Sarangi said.

The price of iron ore fines has also been halved to Rs 700-800 per tonne.

OMC has also scaled down its turnover projection to Rs 2,000-2,200 crore from Rs 3,000 crore as estimated under high iron ore price regime.

OMC in the current year may produce up to six million tonne of iron ore as against last year's 4.5 million tonne.

The National Mineral Development Corporation (NMDC) board will meet on November 25 to decide on reducing the iron ore price looking at the sharp correction in global iron ore price.

Meanwhile, Sarangi said OMC would enter coal mining and has been allotted three blocks in Talcher.