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India PGM Extraction Advances With OMC Pilot Trial in Odisha

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India PGM Extraction Advances With OMC Pilot Trial in Odisha
Odisha Mining

India PGM extraction has taken an important step forward after Odisha Mining Corporation completed a pilot-scale trial to recover platinum group metals from chromite ore. The successful trial marks progress toward domestic production of platinum, palladium and rhodium.

India PGM extraction is strategically important because the country currently relies almost entirely on imported platinum group metals. Most of those imports come from South Africa and Russia, leaving Indian manufacturers exposed to supply disruptions, geopolitical risk and price volatility.

India PGM extraction could also strengthen the country’s broader critical metals strategy. PGMs are essential for automotive catalytic converters, clean-energy technologies, electronics, defence systems and advanced manufacturing.

The trial was completed at the Institute of Minerals and Materials Technology in Bhubaneswar using chromite ore from OMC’s Bangur mine in Odisha. The 1 t/h pilot plant will now be used to validate recovery rates, operating stability and scalability under real-time conditions.

Chromite Ore Route Could Open Domestic PGM Supply

OMC’s pilot programme focuses on extracting PGMs from chromite ore associated with the Bangur mine. This is significant because chromite deposits can contain recoverable platinum group elements if mineralogy, processing and recovery economics are favourable.

The pilot plant will test whether the process can move beyond laboratory success. Recovery rates, concentrate quality, operational consistency and scalability will determine whether India can move toward commercial production.

The project was developed under a 100mn rupees research and development programme. OMC is working with CSIR-IMMT and Mintek South Africa, combining domestic resource access with international processing expertise.

This collaboration matters because PGM extraction and beneficiation are technically demanding. Platinum, palladium and rhodium often occur in low concentrations and require specialised processing, concentration and smelting routes.

The broader goal is to establish India’s first integrated PGM beneficiation and smelting facility. If successful, the project could turn Odisha’s chromite resources into a domestic source of strategic metals.

Critical Metals Security Becomes Industrial Priority

India’s dependence on imported PGMs creates risk for several industries. Automotive catalytic converters remain a major end-use, especially as emissions standards require reliable access to platinum, palladium and rhodium.

Defence, electronics and advanced manufacturing also need secure PGM supply. These applications often require small volumes but high reliability, making supply security more important than simple commodity availability.

Domestic PGM production would not immediately remove India’s import dependence. However, it could create a strategic buffer, support local processing skills and reduce exposure to external supply shocks.

OMC’s next challenge is commercialisation. The pilot plant must prove that recovery can be stable, scalable and economically viable using Bangur chromite feedstock.

For India’s critical minerals policy, the project shows the value of recovering strategic metals from existing mining operations. By-product recovery can improve resource efficiency and create new domestic supply streams without relying only on new primary mines.

The Metalnomist Commentary

OMC’s pilot trial shows that India is moving from critical minerals policy ambition into process development. The real breakthrough will come if Odisha’s chromite resources can support a commercial PGM beneficiation and smelting route.

India's OMC Increases September Chrome Ore Base Prices

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India's OMC

India's state-owned Odisha Mining Corporation (OMC) has raised the base prices of chrome ore at its September auction. The increase comes in response to rising ferro-chrome prices. OMC set the base price for 48-49.99% grade ore from its South Kaliapani mines at 19,743 rupees per tonne ($236.5/t), up from 18,386 rupees per tonne in August. This reflects the upward trend in ferro-chrome prices and the growing demand from producers seeking higher returns through exports. Domestic buyers, however, remain cautious due to high production costs and a sluggish stainless steel market.

Interestingly, OMC is not offering its 50-51.99% grade ore from its Sukrangi mines in September. However, the base price for this grade in August was approximately 20,173 rupees per tonne. The state's trading firm MSTC will manage the sale of 22,400 tonnes of 42-54% grade friable chrome ore from the South Kaliapani and Sukrangi mines on 20 September. This is a drop from the 24,800 tonnes offered at the August auction, likely due to the lower output caused by the monsoon season.

Additionally, MSTC will also offer around 1,300 tonnes of lumps, chips, and fines (30-36% grade) from the Bangur mines on behalf of OMC. Despite these price increases, India's domestic ferro-chrome prices for 60% grade remained stable at 106,000-108,000 rupees per tonne ex-works as of 19 September.

India’s OMC Raises Chrome Ore Base Prices Amid Limited Supply

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Odisha

India’s state-owned Odisha Mining Corporation (OMC) has raised base prices for chrome ore at its October auction due to limited availability. The move reflects ongoing challenges in the ferro-chrome market, exacerbated by high production costs and sluggish demand in the stainless steel sector.

Price Adjustments

OMC set the base price for 48-49.99% grade chrome ore from its South Kaliapani mines at 21,026 rupees per tonne (Rs/t) ($250.2/t) in October, an increase from 19,743 Rs/t at its September auction. The base price for 50-51.99% grade ore from Sukrangi mines was set at 21,902 Rs/t, marking its return to the market after being absent in September’s auction.

Despite the price hikes, trading activity remains muted due to the high production costs and subdued demand in the stainless steel market. Domestic producers are seeking higher returns in the local market, partially driven by elevated freight costs in the export market.

Auction Highlights

On October 18, state-owned trading firm MSTC, on behalf of OMC, will auction:
  •  23,500 tonnes of 42-54% grade friable chrome ore from the South Kaliapani and Sukrangi mines (up from 22,400 tonnes in September).
  •  1,400 tonnes of 32-36% grade lumps, chips, and fines from Bangur mines.

Stable Ferro-Chrome Prices 

India’s domestic 60% grade ferro-chrome prices remained stable at Rs110,000-111,500 per tonne ex-works as of October 17. However, producers continue to face margin pressures due to high input costs and limited market activity.

Market Context

The increase in OMC’s base prices highlights the supply-demand imbalance in India’s chrome ore market. With limited ore availability and sluggish demand in the stainless steel sector, market participants are keeping a close eye on auction outcomes and price trends.

India’s FeCr prices rise on tight supply

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Indian high carbon FeCr(Ferro-Chrome) prices rose to a two-month high this week on the back of output cuts at local producers.

Prices for HC 60pc grade FeCr prices increased to 109,000-110,000 rupees/t ($1,308-1,320/t) ex-works on 18 June from Rs106,000-107,000/t on 13 June, hitting the highest level since 15 April.

Supply has been tight for a few weeks because some producers turned their focus toward manganese alloy production, and others cut production because of subdued demand from the stainless steel sector. A large FeCr producer has also halted offers, further limiting the already-tight spot supply.

"Some producers opted for production cuts, while others shifted focus to manganese alloy production as it offered better returns despite the higher production costs," a producer said.

Market participants expect the upcoming June chrome ore tender from state-owned mining firm OMC to provide clarity on the price outlook for FeCr. Many FeCr producers anticipate FeCr prices to move even higher if OMC lifts prices further in its June tender. "But if [the OMC tender price] does not increase, then FeCr prices may remain rangebound," another producer said.

State-owned trading firm MSTC on 21 May offered on OMC's behalf 37,300t of chrome ore from the South Kaliapani and Sukrangi mines. The base price for 48-49.99pc-grade ore from its South Kaliapani mines was Rs19,022/t, down from Rs19,897/t in its April tender. The company did not sell 50-51.99pc grade ore from its Sukrangi mines in the May tender.

India Manganese Alloy Prices Fall as Supply Glut Meets Weak Demand

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India Manganese Alloy Prices Fall as Supply Glut Meets Weak Demand
Manganese alloy

India manganese alloy prices declined as muted demand, excess supply and cautious buying weighed on the bulk alloys market. Ferro-manganese and silico-manganese both moved lower, while ferro-chrome and ferro-silicon prices remained broadly stable.

India manganese alloy prices are under pressure from a widening mismatch between production and consumption. Weak stainless steel demand, limited export bookings and inventory overhangs have reduced market momentum.

India manganese alloy prices are also being affected by liquidity pressure among producers. Some suppliers lowered offers toward the end of the month to generate cash flow, adding further downside pressure.

The broader market remains uneven. Ferro-chrome is supported by long-term export commitments, while ferro-silicon is supported by limited availability. Manganese alloys, however, face weaker domestic and overseas demand.

Ferro-Manganese and Silico-Manganese Weaken on Inventory Pressure

Ferro-manganese prices fell as domestic demand remained insufficient to absorb available supply. The 70% ferro-manganese price declined to Rs83,000-85,000/t ex-works, while 75% material fell to Rs90,000-92,000/t.

Higher manganese ore costs continue to provide some support. This is why ferro-manganese prices are expected to remain above silico-manganese, despite weak buying and limited spot activity.

However, the domestic market is still struggling with excess supply. Producers are competing for limited orders, and some have cut prices to maintain liquidity.

Silico-manganese prices also moved lower. Indian 60% silico-manganese fell to Rs82,500-83,500/t ex-works, with market activity described as extremely limited.

Price recovery will be difficult until inventories are absorbed. Buyers remain cautious and are delaying purchases because they expect further corrections.

Export prices also weakened. The 60% silico-manganese export price fell to $890-900/t fob east coast, while 65% material declined to $960-980/t fob.

Overseas buying slowed as higher offer levels discouraged bookings. Middle East enquiries halted because of geopolitical tensions, while European demand weakened under quota restrictions.

CBAM certification is adding another pressure point. European buyers are increasingly demanding carbon documentation for high-carbon manganese alloys, raising compliance costs and complicating Indian export sales.

Ferro-Chrome and Ferro-Silicon Hold Steady Despite Weak Sentiment

Ferro-chrome prices remained stable even as downstream demand stayed subdued. High-carbon 60% ferro-chrome held at Rs117,000-119,000/t ex-works.

Domestic producers continued fulfilling long-term export commitments. This helped keep the market steady despite weaker bids in OMC’s chrome ore auction.

The fall in auction bids reflected softer consumer demand. However, ferro-chrome did not face the same immediate inventory and liquidity pressure seen in manganese alloys.

Ferro-silicon prices also held steady. The 70% ferro-silicon price remained at Rs108,000-110,000/t ex-works, supported by limited availability and firm demand.

The difference between ferro-silicon and manganese alloys shows how supply balance is driving price direction. Ferro-silicon has tighter availability, while manganese alloys face surplus material and weaker offtake.

For Indian bulk alloys, export conditions remain critical. Domestic demand alone may not be enough to absorb production if overseas buying stays weak.

The European market will also become more difficult for high-carbon alloys. CBAM compliance, quota restrictions and weak steel consumption could keep Indian exporters under pressure.

The Metalnomist Commentary

India’s manganese alloy market is not facing a raw material problem alone; it is facing a demand absorption problem. Until excess inventories clear and export demand improves, ore cost support will only slow the decline rather than reverse it.