PTI reported that NMDC has clinched a 33% lower rate on the long term contracted prices for iron ore with Japanese and South Korean steel mills for the current fiscal.

Mr Rana Som chairman of NMDC said "We have entered into the contract at the same rate as of Rio Tinto. About 32.95% down on iron ore fines and 44.47% down on iron ore lumps from the last fiscal's contracted rates."

Mr Som said “The contracted rates for iron ore fines stand at USD 61.7 tonne and that on lumps is at USD 71.5 tonne. Global mining giant Rio Tinto has earlier this year settled its 2009-10 long term contract with Japanese steel mills at such discount.”

The proposed price negotiation holds significance for the domestic steel companies like JSW and RINL as the rate settled by NMDC with overseas firms acts as a benchmark for them.

A team led by Mr Som had left for the two Asian countries last week. While the pact was signed with the Japanese steel makers last week, the country's largest iron ore miner inked the pact with the South Korean mills today. Of its annual iron ore production of about 30 million tonne, NMDC had supplied over 3 million tonne to Japanese and South Korean steel companies including POSCO last year.

(Sourced from Press Trust of India)