Alleged for selling iron ore at high rates, state-owned miner NMDC will hold a board meeting on January 2, 2013 to decide on prices of iron ore for January’13. Further towards this development, consulting firm KPMG will help the miner in devising a pricing formula for the mineral, which most probably be submitted by January end. However, the pricing will be mainly based on demand-supply situation as well as the prevailing rates globally.
The prices were kept unchanged by NMDC in December after cuts of up to 11% for categories, lumps and fines. Price revisions of October and November had come after various domestic steel firms and industry associations had complained to the Steel Ministry about NMDC allegedly misusing its dominant position in the domestic market. The iron ore producer had increased the prices by 8-13% for the July-September period, when international rates were down.
NMDC, India's top ore miner, accounts for about 15 per cent of iron ore mined in the country, with annual production capacity of 30 million tonnes.
