The Union Cabinet chaired by Prime Minister Narendra Modi has approved to renew long term agreement with Japanese and South Korean Steel Mills for supply of high grade Indian iron ore from April 2015 to March 2018. 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 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. Iron ore of higher grade was supplied to Japan and South Korea for the last four to five decades. These agreements are expected to 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.