Press Information Bureau

Government of India

Ministry of Commerce & Industry

07-July-2011 14:23 IST

Renewal of Long Term Agreements for supply of iron ore to Japan and South Korea through MMITC Limited

The Union Cabinet approved the proposal to renew the Long Term Agreements and has authorised MMTC to supply iron ore (lumps and fines) of grade +64% Fe content to Japanese Steel Mills (JSMs) and POSCO of South Korea for another 3 years (i.e. 2011-2014) under Long Term Agreements entered into by MMTC earlier.

The Cabinet in its meeting held on 30th March, 2006 had authorised MMTC to engage in fresh Long Term Agreements (LTAs) with Japanese Steel Mills (JSMs), POSCO of South Korea 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 31st March, 2011. JSMs have formally requested MMTC to renew these agreements with effect from 1st April, 2011.

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AD/RK

Renewal of long-term agreements for iron ore supply authorizes MMTC to extend contracts with Japanese and South Korean steel mills. The Union Cabinet authorised renewal of existing Long Term Agreements permitting MMTC Limited to supply iron ore (lumps and fines) meeting the stated grade specification to Japanese Steel Mills and POSCO of South Korea for a further contractual term, continuing the previously authorised framework and responding to formal buyer requests for extension after the prior LTAs expired.