Press Information Bureau

Government of India

Ministry of Commerce & Industry

10-August-2011 17:00 IST

Provision in the Agreement With POSCO to Export of Iron-Ore

As per the terms of MoU between POSCO and Government of Orissa signed in June, 2005, POSCO India Limited’s Orissa Plant may swap certain quantities (not exceeding 30% of the total requirement for the Paradeep Plant annually) of such iron ore which have high alumina content with equal quantity of low alumina content iron ore of better Fe content imported for blending, in order to produce better quality steel in the Paradeep project and conserve energy. Any export of iron ore by way of swap will be allowed only after an equivalent quantity of ore has been imported for the plant. The original MoU between POSCO and Government of Orissa was valid for five years.

This information was given by the Minister of State for Commerce and Industry Shri Jyotiraditya M. Scindia in a written reply to a question, in the Rajya Sabha today.

DS/gk

Ore swap provision permits exporting high-alumina ore only after equivalent imported low-alumina ore is brought in. The agreement allows limited export of high-alumina iron ore by swapping it for imported low-alumina ore used for blending to improve steel quality and conserve energy; any swap-based export is permitted only after an equivalent quantity of low-alumina ore has been imported for the plant and operates within the MoU's fixed term.