According to senior executive, NMDC Limited will announce iron ore prices for domestic steel companies for this fiscal within a month.

Mr Rana Som chairman of India's largest iron ore producer said "I will be going to Japan in the second week of July to conclude iron ore sales contracts with Japanese steel mills. Once that happens, the Indian prices would be announced too."

Mr Som said NMDC's prices would be in the same range as Rio Tinto, which has sharply cut its prices. Rio Tinto has on an average cut its iron ore fines prices by 33% versus last year, while the price of lumps have been cut by 44%. Iron ore prices are falling as a result of a decline in steel demand due to the global economic slowdown.

He said that on the Rio Tinto-BHP Billiton alliance, the deal would reduce the space for a partnership with Rio Tinto. The Rio-BHP deal is limited to Australian mines and to that extent, the relationship NMDC has with Rio Tinto has been squeezed.

He, however, added that Rio Tinto and NMDC will continue to jointly seek mining properties globally as agreed to last year.

India's current financial year began April 1st. NMDC exports 13% of its iron ore supplies and sells the rest to domestic steel companies.

(Sourced from Dow Jones Newswires)