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 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% Fe content to Japanese steel mills and POSCO of South Korea for another 3 years till 2014.

The cabinet at its meeting on March 30th 2006 had authorized MMTC to engage in fresh long term agreements 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 April 1st 2011

(Sourced from www.domain-b.com)