The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to renew Long Term Agreement with Japanese and South Korean Steel Mills for supply of high grade Indian iron ore, during the three year period from April, 2015 to March, 2018. The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year, and will be supplied primarily from the mines of the National Mineral Development Corporation (NMDC). The contract will be executed by the Metals and Minerals Trading Corporation of India Limited (MMTC) under the Department of Commerce.

 Background:

 Iron ore of higher grade have been supplied by India to Japan and South Korea under Long Term Agreements during the last four to five decades. These agreements will help continue this relationship and strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc. The agreement will also help utilize surplus production of iron ore currently available in India.

Long Term Agreement renewal for high-grade iron ore supply to Japan and South Korea continues strategic trade and industrial collaboration. Renewal of the Long Term Agreement permits continued multi year supply of high grade Indian iron ore to Japanese and South Korean steel mills for April 2015-March 2018, executed by the national trading corporation with annual quantity banding and primary sourcing from domestic state mineral production to fulfil export allocations.