NEW DELHI: The Union Cabinet Chaired by Prime Minister Shri Narendra Modi has approved the renewal of Long Term Agreements (LTAs) for supply of iron ore (lumps and fines) of grade +64% Fe content to Japanese Steel Mills (JSMs) and POSCO, South Korea for another five years (i.e. 1.4.2018 upto 31.3.2023) through MMTC Limited. The range of quantity of iron ore to be exported under LTA per annum shall be 3.80 million tonnes (min.) per annum to 5.50 million tonnes per annum (max.) of both NMDC and non-NMDC origin iron ore with quantitative ceilings for export of Bailadila Lumps at 1.81 million MTs per annum and Bailadila Fines at 2.71 million MTs per annum.
The existing policy of single agency operation and exports through MMTC, with trading margin of 2.8% of FOB price, shall be continued.
Export of iron ore under the LTAs would help to strengthen India’s bilateral ties with long-standing partner countries, Japan and South Korea secure an export market and result in inflow of foreign exchange.
In fact India is exporting iron ore to Japan since almost six decades and is a consistent component of India’s bilateral relations with Japan. MMTC has been supplying iron ore to JSMs since 1963 and to South Korea since 1973.