The union cabinet has approved a proposal to renew long-term agreements for supply of iron ore and has authorised Metals and Minerals Trading Corporation (MMTC) to supply iron ore to Japanese, South Korean and Chinese steel mills.
The renewal of the long-term agreement authorises MMTC to export iron ore (lumps and fines) of grade +64 per cent Fe content to Japanese steel mills and POSCO of South Korea for another 3 years (ie till 2014).
The cabinet at its meeting on 30 March 2006 had authorised MMTC to engage in fresh long-term agreements (LTAs) with Japanese steel mills, South Africa's POSCO and Chinese steel mills for supply of iron ore for a period of five years (2006-2011).
The long-term agreements entered into by MMTC during the year 2006-11 expired on 31 March 2011. Japanese steel mills have, meanwhile, formally requested to renew these agreements with effect from 1 April 2011.