PTI reported that state owned trading giant MMTC has inked pacts with Japanese and South Korean steel companies to supply 2.8 million tonnes of iron ore annually for a period of three years.

MMTC would supply iron ore (lumps and fines) of grade (plus) 64 Fe, or high grade content, to Japanese and Korean steel mills from country's largest iron ore miner NMDC's Baildila mines in Chhattisgarh.

An MMTC official told PTI that "We have signed iron ore supply contracts with five Japanese firms and one South Korean company for a period of three years. The exports are expected to start from July this year.”

The official said that under the pact, MMTC will supply 2.3 million tonne of iron ore per annum to five Japanese firms including Nippon Steel Corporation, JFE Steel Corporation and Nisshin Steel besides 0.5 million tonne to South Korean major POSCO.

An official delegation of MMTC had visited Tokyo and Seoul this month to sign contracts with the firms.

The Cabinet, in March, had approved export of iron ore by MMTC to Japanese and South Korean steel mills for three more years.

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

Source - PTI

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