The Indian government is to make a decision on renewal of the long-term agreement for Indian
iron ore exports to Japan and South Korea, considering the opposition to exports of raw material from certain sections of domestic industry, a senior government official said on Thursday, May 28.
Under an existing long-term agreement, about 2.5 million mt of Indian
iron ore mined by NMDC Limited were shipped to these countries by government-owned trading house MMTC Limited, the official said.
However, on expiry of the agreement a new three-year long-term agreement was scheduled for negotiations but, since several local industry opposed
iron ore exports at a time when there was a shortage within the country, the draft agreement was placed before the Ministry of Commerce to determine the feasibility of a new agreement and the quantity that could be shipped, he added.
As reported by SteelOrbis on January 13 this year,
India's government agencies had recommended that NMDC either put a halt to exports of
iron ore to Japan and South Korea under long-term agreements or should renegotiate terms given the volatility in international
iron ore prices.