NMDC increases iron ore lump rates by Rs 200 to Rs 4,300 per tonne

State-owned NMDC on Monday announced that it has hiked the prices of iron ore lumps by Rs 200 to Rs 4,300 per tonne.

The country's largest iron ore miner has also increased rates of iron ore fines by Rs 500 to Rs 3,410/tonne, NMDC said in a regulatory filing.

The prices are effective January 1, and exclude royalty, district mineral fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee and other taxes, the company said.

Lump ore or high-grade iron contains 65.53 per cent Fe (iron), while fines are inferior grade ore with 64 per cent and less Fe content.

In the last price revision announced on November 30, NMDC had fixed the rate of the lump at Rs 4,100 per tonne and that of fines at Rs 2,910 a tonne with immediate effect.

Iron ore is one of the key raw materials used in the manufacturing of steel, and any movement in its prices has a direct impact on the rates of the steel, an alloy widely used in segments such as construction, infrastructure, automobile and railways.

Hyderabad-based NMDC (formerly known as National Mineral Development Corporation) under the Ministry of Steel contributes over 17 per cent to India's total iron ore production.