The Indian public sector steel company Rashtriya Nigam Limited (RINL) plans to import 60,000 metric tons of ore from Brazil due to its insecurity as regards raw material supplies.
Unlike fellow Indian public steel company SAIL, RINL does not have its own iron ore mines and has to rely on supplies from the National Mineral Development Corporation (NMDC), which are unable to meet its production requirements due to the high alumina content in the supplied ore.
On the other hand, several Indian iron ore producers and exporters, under pressure from the country's export duty of Rupees 300/mt (US$7.459) on iron ore, have turned their attentions toward largely unexplored iron ore resources in Malaysia.
For instance, Indian companies Mineral Enterprises and Matha Mineral have created a 66:33 joint venture company, Iron Stone Mining, with local Malaysian company KSG Resources.
Currently, the JV is conducting iron ore resource exploration and expects to start mining in six months.
Meanwhile, another Indian iron ore company SL Mining Industries has applied for a mining license in Malaysia.