Context:
State-owned mining major National Mineral Development Corporation (NMDC) has announced a reduction in iron ore prices for the first time in three months. The price cut is expected to provide relief to the steel industry, which has been facing cost pressures.
Key Highlights / Details:
- Prices reduced by ₹250 per tonne for both Baila Lump and Fines.
- New prices effective from October 22:
- Baila Lump: ₹5,850 per tonne
- Fines: ₹4,750 per tonne
- Prices include royalty, District Mineral Foundation (DMF) fees, National Mineral Exploration Trust (NMET) fees, forest permit, transit fees, GST, and other taxes.
- NMDC reviews prices based on global iron ore trends and domestic demand.
- The move may help domestic steel manufacturers reduce production costs and stabilize steel prices.
- Iron ore is a key raw material for industries like construction, infrastructure, automobiles, and capital goods.
Relevant Prelims Points:
- NMDC – PSU under Ministry of Steel
- Largest iron ore producer in India
- Major mines: Bailadila (Chhattisgarh), Donimalai (Karnataka)
- Iron ore grades: Hematite (high grade), Magnetite (low grade)
- DMF (2015): district mineral fund for mining-affected areas
- NMET: promotes mineral exploration
Relevant Mains Points:
- Impact of commodity price fluctuations on economy
- Role of PSUs in price stabilization
- Link between mining and industrial growth
- Raw material security for Atmanirbhar Bharat
- Mining sector reforms and sustainable mining