NMDC Raises Iron Ore Prices by Rs 250/tonne

New Delhi, May 28 (PTI) State-owned NMDC on Tuesday increased the prices of lump ore by Rs 250 a tonne and fines by Rs 350 per tonne with immediate effect.

In a regulatory filing, the miner said it has revised the cost of lump ore to Rs 6,450/a tonne and fines to Rs 5,610 per tonne.

Lump ore or high-grade iron ore contains 65.5 per cent Fe (iron), while fines are inferior grade ore with 64 per cent and less Fe content.

The prices are effective from May 28 and include royalty and contributions towards district mineral fund (DMF), National Mineral Exploration Trust (DMET). It is excluding cess, forest permit fee and other taxes, the company said.

The announcement has come a day after the company announced its quarterly results. It reported a 38 per cent fall in consolidated net profit at Rs 1,415.62 crore for the March quarter on account of increased expenses.

In the last price revision announced on April 29, NMDC fixed the rate of the lump at Rs 6,200 per tonne and that of fines at Rs 5,260 a tonne.

Iron ore is one of the key raw materials used in manufacturing of steel, and any movement in its prices has a direct impact on rates of steel, an alloy widely used in segments such as construction, infrastructure, automobile and railways.

Hyderabad-based NMDC is India's largest iron ore mining company catering to the country's around 20 per cent demand of the steel-making raw material.