The Union Cabinet Chaired by Prime Minister Shri Narendra
Modi has approved the renewal of Long Term Agreements (LTAs) for supply of
iron ore (lumps and fines) of grade +64% Fe content to Japanese Steel
Mills (JSMs) and POSCO, South Korea for another five years (i.e. 1.4.2018 upto
31.3.2023) through MMTC Limited.
Details:
- The
present LTAs are valid until 31.3.2018. The renewed LTAs with steel mills
of Japan and POSCO, South Korea shall be for a period of five years from
1.4.2018 to 31.3.2023.
- The
range of quantity of iron ore to be exported under LTA per annum shall be
3.80 million tons (min.) per annum to 5.50 million tons per annum (max.)
of both NMDC and non-NMDC origin iron ore with quantitative ceilings for
export of Bailadila Lumps at 1.81 million MTs per annum and Bailadila
Fines at 2.71 million MTs per annum.
- The
quantities of iron ore proposed for supply to JSMs and POSCO, South Korea
through MMTC Limited under these LTAs will be of grade +64% Fe content.
The break up is as follows:-
|
Japanese Steel Mills
|
3.00 ~ 4.30 million tons per annum
|
|
POSCO, South Korea
|
0.80 ~1 .20 million tons per annum
|
- The
existing policy of single agency operation and exports through MMTC, with
trading margin of 2.8% of FOB price, shall be continued.
Benefits:
Export of iron ore under the LTAs would help to strengthen
India’s bilateral ties with long-standing partner countries, Japan and South
Korea secure an export market and result in inflow of foreign exchange.
The agreement will enable India to secure international
market for its ores and ensure stable economic ecosystem which provides direct
and indirect employment in mining, logistics and related sectors.
Background:
The history of India's iron ore exports to Japan is almost
six decades old and is a consistent component of India's bilateral relations
with Japan. MMTC has been supplying iron ore to JSMs since 1963 and to South
Korea since 1973. The current LTAs with Japanese Steel Mills (JSMs) and POSCO,
South Korea, for supply of iron ore for a period of three years will expire on
31st March, 2018. The Cabinet, in its meeting held on
24.06.2015 had authorized MMTC Limited to engage in Long Term Agreements(LTAs)
with Japanese Steel Mills (JSMs) and POSCO, South Korea, for supply of iron ore
for a period of three years (i.e. 2015 to 2018).
Courtesy: pib.nic.in
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