India will supply 16.5 million tonnes of superior grade iron ore to steel mills in Japan and South Korea over a three-year period from 2015 to 2018 under a renewed agreement approved today.
The union cabinet today gave its approval to renew long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore, for the three-year period from April 2015 to March 2018.
Under the agreement, India will guarantee annual supplies in the range of 3.8 million tonnes to 5.5 million tonnes of iron ore during the period, and supplies will be made primarily from the mines of the National Mineral Development Corporation (NMDC).
The contract will be executed by the Metals and Minerals Trading Corporation of India Limited (MMTC), which functions under the department of commerce.
Iron ore of higher grade have been supplied by India to Japan and South Korea under long-term agreements during the last four to five decades. These agreements will help continue this relationship and strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc.
The agreement will also help utilise surplus production of iron ore currently available in India, according to a government release.