September 08, 2008

China proposes long term iron ore pacts with India

PTI reported that China has proposed a long term agreement with India for importing iron ore to meet its growing demand of the mineral. The proposal was made during a meeting between officials from India's steel ministry and the Chinese ministry of commerce.

The meeting was attended by officials of China's top economic planner National Development and Reforms Commission and Sinosteel, largest steel trading company in that country.

Mr JS Sarma Indian steel ministry secretary said "They proposed a long term agreement. We have not responded to it. Chinese officials informed that Beijing had long term arrangements with Australia and Brazil, with prices not being fixed and wants to enter into a similar agreement with India.”

Mr Sarma said India had significant reserves, but it wants to preserve as much as possible. Steel maker in India have been, for long, demanding reduction in iron ore exports to ensure a secured supply of the mineral. He said the steel ministry had proposed to the Finance Ministry a 25% duty on exports of iron ore.