Govt approves iron ore exports to Japan, South Korea

New Delhi: The government today approved iron ore exports by MMTC to Japanese and South Korean steel mills, including that of Posco's, for next three years.

"The Cabinet has approved the proposal. This will be done through MMTC," an official said.[caption id="attachment_254146" align="alignleft" width="380" caption="Iron ore. Reuters"][/caption]

MMTC's earlier contract to supply iron ore for five years to Japanese and Korean steel mills had expired on 31 March 2011, and since then it was pending as price negotiations have not taken place.

As per today's approval, the exports by MMTC will be confined between 3.80 million tonnes and 5.50 million tonnes of iron ore in a year and the price would be negotiated within a month, the official said.

The new contracts, to be implemented through long-term agreements, will be valid till March 2015.

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The supply of iron ore, although of smaller quantities, has been a core element in the bilateral ties with Japan and South Korea and will further strengthen the relations, he added.

MMTC will be supplying iron ore (lumps and fines) of grade (plus) 64 Fe, or high grade content, to Japanese and Korean steel mills from NMDC's Baildila mines in Chhattisgarh.

PTI