Indian state-run steel producer Rashtriya Ispat Nigam Limited (RINL) has floated a notice seeking an expression of interest (EoI) from iron ore miners seeking to enter into long-term supply agreements, a company source said on Friday, November 27.
The source said that RINL is seeking to broaden its raw material supply base through long-term agreements with miner owners with capabilities of supplying iron ore lumps, calibrated lump ore with a minimum Fe content of 65.5 percent and maximum alumina and silica content of 2.25 percent.
He said that the EoI needed to specify the guaranteed supplies and grades that could be supplied by a mine owner and the agreement will stipulate bonus or penalties for supplies depending on whether supply volumes and grades were above or below specifications.
RINL operates a 7.3 million mt steel mill in the southern Indian port town of Vishakhapatnam but does not have any captive raw material sources.