NMDC may have to cut prices due to glut
With sale of iron ore from Karnataka mines, including state-owned NMDC, having fallen sharply, miners may have to cut prices of the raw material in order to clamp down the glut situation, industry officials and brokerages said.
State-owned iron ore miner, NMDC Ltd has the highest contribution to Karnataka’s iron ore production which now stands at a ceiling of 35 million tonne from 30 million earlier. NMDC produces about 12 million tonne ore annually from its Donimalai mine in the state.
Apart from NMDC, Anil Agarwal-led Vedanta, MSPL Limited and Bellary Iron Ore pvt ltd are some of the iron ore miners in Karnataka.
The total capacity of Karnataka iron ore mines can be extended upto 40-45 million tonne. In 2016-17 and 2017-18 the state produced around 27-28 million every year.