Tata Sponge set to increase product prices on revision of mining royalty rates

Tata Sponge Iron is set to increase its product prices in the coming days following a revision of mining royalty rates. Royalty rates for iron-ore mining have been revised to 15% from 10%. The upward revision in royalty charges will lead to increased production costs for sponge iron units. This, in turn, is expected to lead to a price rise.

The costs are expected to go up by Rs 400 to Rs 500 a tonne in case of sponge iron depending on the market. At present, the sponge iron prices vary between Rs 21,600 to Rs 22,000 per tonne, depending on the market.

Tata Sponge Iron is engaged in business of manufacturing high-grade sponge iron that is consistent in quality. The company has an annual manufacturing capacity of 390,000 tonnes of sponge iron from its three kilns. Its production plant is situated at Bilaipada in Orissa.