State-run miner NDMC has cut the price of premium lump ore by 5.9 per cent or Rs 320 per tonne for January 2013, apparently in a bid to pacify hue & cry over its high ore prices.

Prior to the price cut, the average price for the miner's iron ore lumps, with 65 per cent iron content, was at nearly Rs 5,400 a tonne. The price of iron ore fines, which contain less iron content, is still unchanged at Rs 2,610 per tonne.

Announcing the price cut, NDMC Acting Chairman CS Verma said, "We have decided to slash lump ore prices by 5.9% for January 2013. However, price of iron ore fines will remain unchanged."

For the July to September, when global prices were low, NMDC had hiked the price of iron ore by 8 per cent to 13 per cent.

As nearly 70 per cent of NDMC's revenues come from iron ore fines, the cut in the price of premium lump ore will not make big difference to the miner's total revenue.

NDMC announced the cut in the price of its premium lump ore as international prices have still firm. In December 2012, international prices for iron ore jumped 24 per cent and are still hovering nearly $145 a tonne.

However, the price cut failed to bring cheer to domestic steel industry, which had been demanding bigger price cut.