Odisha miners raise iron ore prices with mining leases expiry drawing closer
2019-12-27 13:43:33 [Print]
Odisha-based miners have raised iron ore prices by up to 10% even as supply from the state hit an all-time high as steel makers stock the mineral in anticipation of a supply disruption when multiple mine leases expire at the end of this fiscal.
Iron ore prices have gone up by Rs 150 to Rs 300 per tonne due to a combination of seasonal demand uptick and stockpiling of the mineral by steel mills.
Leases of 17 non-captive iron ore mines in the country's largest iron ore producing state are set to lapse on 31 March 2020. These mines collectively produce more than 60 million tonnes of iron ore annually -- more than a quarter of the country's total production. New lessees for the mines after reauctioning will need an array of clearances including Environment Clearance (EC) and Forest Clearance (FC), potentially delaying the resumption of mining.
Iron ore prices have gone up by Rs 150 to Rs 300 per tonne due to a combination of seasonal demand uptick and stockpiling of the mineral by steel mills.
Leases of 17 non-captive iron ore mines in the country's largest iron ore producing state are set to lapse on 31 March 2020. These mines collectively produce more than 60 million tonnes of iron ore annually -- more than a quarter of the country's total production. New lessees for the mines after reauctioning will need an array of clearances including Environment Clearance (EC) and Forest Clearance (FC), potentially delaying the resumption of mining.
