State-run Metals and Minerals Trading Corporation of India (MMTC) Ltd has initiated dialogue with leading iron ore producer National Mineral Development Corporation (NMDC) for exports of the commodity to South Korea and Japan.
MMTC is looking at a five-year agreement with NMDC for a supply of 2.6 million tonnes of iron ore each year.
"We already have an agreement with NMDC wherein its iron ore exports are canalised through NMDC. Now, we are looking at a longer pact of five years to ship 2.6 million tonnes of iron ore annually to steel making industries in Japan and South Korea. The demand is growing in the two countries and NMDC has high-grade iron ore suitable for their consumption”, said an MMTC official.
MMTC expects to sign the fresh pact with NMDC before the close of this fiscal. Exports of NMDC produced iron ore through MMTC is likely to take off from April 2018.
In 2016-17, NMDC achieved 19 per cent growth in its iron ore output at 34 million tonnes. Its sales stood at 35.6 million tonnes, higher by 24 per cent over the previous fiscal. In FY17, NMDC clocked a turnover of Rs 8,830 crore, 37 per cent higher than 2015-16. The net worth of the central PSU was Rs 22,519 crore (as on March 31, 2017).
To meet the growing requirement of iron ore, especially from the Indian steel industries, NMDC aims to ramp up production to 67 million tonnes per annum (mtpa) by 2021-22. This is proposed to be achieved largely through brownfield expansion of existing mines and improvement in the evacuation. NMDC is also looking at developing a greenfield mine through a joint venture with the Chhattisgarh Mineral Development Corporation. Mining lease has already been executed for this purpose.
Source: Business Standard