New Delhi: The Union Cabinet on Wednesday approved a long-term agreement for export of iron to Japan and South Korea through state-owned trading firm MMTC.
"Cabinet approves renewal of long-term agreements for supply of iron ore (lumps and fines)...To Japanese steel mills and POSCO, South Korea for another five years (from April 2018 to March 2023) through MMTC," an official release said.
The range of quantity of iron ore to be exported would be 3.8 million tonnes per annum to 5.5 million tonnes per annum, it added.
The supply of iron ore, although of smaller quantities, has been a core element in the bilateral ties with Japan and South Korea. The quantities of iron ore proposed for supply to JSMs and POSCO, South Korea through MMTC Limited under these LTAs will be of grade +64% Fe content, it said.
The agreement will enable India to secure international market for its ores and ensure stable economic ecosystem which provides direct and indirect employment in mining, logistics and related sectors, the release said.
MMTC will be supplying iron ore of grade (plus) 64 Fe, or high grade content, to Japanese and Korean steel mills from NMDC's Bailadila mines in Chhattisgarh.
It added that the existing policy of single agency operation and exports through MMTC, with trading margin of 2.8 per cent of FOB (free on board) price, shall be continued.