Steel mills in Japan, South Korea set to get high quality iron ore from India
26 April 2018
Steel mills in Japan and South Korea are set to get high quality iron ore from India from this month. The iron ore lumps and fines would have iron content of around 64 % (also known as blue metal) and would be sourced from the mines of National Mineral Development Corporation as well as from other sources.
The earlier three-year agreements for iron ore exports expired on March 31. The Union Cabinet has approved these long-term agreements (LTAs) for a five-year period beginning April 1, 2018.
While Japanese steel mills will get around 4.3 million tonnes of ore per annum, POSCO, South Korea, would get between 0.8 and 1.2 million tonnes per annum under this pact, an official communication said. MMTC would conduct this export , which will not exceed 5.5 million tonnes annually.
The government felt that export of iron ore under LTAs would strengthen India’s bilateral ties with long-standing partner countries, besides boosting foreign exchange flow and securing India’s presence in the international iron ore market.