Iron ore pile-up due to high pricing
Steel companies in Karnataka have pegged iron ore inventory in the State at 2.24 million tonnes (mt) rather than 6.5 mt as claimed by miners who are lobbying hard with government to export the surplus. Unlike other States, iron ore production and sales in Karnataka is restricted in recent years to weed out illegal mining. A Supreme Court-appointed committee fixes annual production quotas, while sales are channelled through e-auctions. According to the Karnataka Iron and Steel Manufacturers Association (Kisma) the Supreme Court-appointed committee fixes iron ore production target based on the demand. But steel companies have held back from bidding for certain quantity of iron ore offered in e-auction as some of the miners are fixing a higher base price for low grade iron ore with high manganese and bauxite content.
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