Indian government-run pellet producer KIOCL Limited is seeking a domestic supplier for 200,000 mt of iron ore fines under an arrangement according to which the supplier would receive an equivalent volume of pellets for onward export sales, company sources said on Monday, April 22.
Iron ore fines suppliers, mine owners, traders or stockists can submit bids by May 17, the sources said.
However, to be eligible to be a supplier, the latter will need to submit an undertaking that it will lift 200,000 mt of iron ore pellets from KIOCL Limited and export it as a “third party” exporter.
Bids from the supplier will be evaluated on the basis of the differential value of the price at which the pellets will be lifted and the price at which iron ore fines will be supplied, the sources said.
Bidders who are interested only in making partial supplies can submit bids in multiples of 50,000 mt, but under the condition that it will lift pellets for subsequent export equivalent to the volume of iron ore fines supplied, the sources added.