Hyderabad: State-run iron ore miner NMDC on Tuesday forecasted a better-than-expected domestic demand, following protective dut-ies imposed on cheaper steel imports Southeast Asian countries.
“Yes. The domestic demand will go up after the government’s action,” said NMDC chairman Narendra Kothari on the sidelines of the company AGM on Tuesday. Global slowdown has hit mineral miners, inclu-ding NMDC, with price coming to $56 a tonne from a peak of over $140.
The state-run miner, which has iron ore projects in Chhatisgarh and Karnataka, has been left with unsold stock in Karnataka. Mr Kothari, however, said, “Fines were sold. But there was some stock of lump (left unsold) because sponge iron industry, which takes our lump, had some (financial) difficulties. (How-ever), we will correct the things and sell everything,” Mr Kothari told this newspaper.
Asked why the company is selling iron ore at a discount in Karnataka, the NMDC chairman said the company fixes the price for all its mines in the entire country and does not have different price for different mines.
“Our price is fixed for all our customers. But if the ore quality is low at some place, the price may go down,” the chairman said. Responding to an inves-tor who questioned the rationale behind setting up steel plants when they are not doing well, Mr Kothari said the steel plant was set up because the state government insists on companies investing in the state for granting mines.
The company has 3 MTPA steel plant in Bastar and 1.2 MTPA pellet plant in Karnataka. Meanwhile, Mr Kothari said the company’s plan to reach a target of 100 million tonnes per ann-um of iron ore production from the current levels of little over 30 MTPA, still remains unchanged despite falling global demand and prices.
