New Delhi April 25 (IANS) The Union Cabinet on Wednesday approved renewal of long-term agreements for export of iron ore to Japan and South Korea through the state-run trading company MMTC according to an official statement.
The Commerce Ministry release said that the cabinet had approved the renewal of the previous long-term agreements for export for another five years following their expiry at the end of last month.
"Cabinet has approved renewal of long-term agreements (LTAs) for supply of iron ore (lumps and fines) to Japanese steel mills and POSCO South Korea for another five years (from 1.4.2018 upto 31.3.2023) through MMTC Ltd " it said.
"The current LTAs with Japanese steel mills and POSCO for supply of iron ore for a period of three years expired on March 31 2018."
The range of quantity of iron ore to be exported would be from a minimum of 3.8 million tonnes per annum to 5.5 million tonnes per annum it added.
According to the ministry the high grade "+64% Fe" content iron ore will be supplied to Japanese and Korean steel mills from the state-run NMDC s Bailadila mines in Chhattisgarh.
The existing policy of single-agency operation and exports through MMTC with a trading margin of 2.8 per cent of free on board (FOB) price will be continued it said.
"Export of iron ore under the LTAs would help to strengthen India s bilateral ties with long-standing partner countries Japan and South Korea " the statement added.
--IANS
bc/qd/bg
