Indian state-run trading firm MMTC Limited has picked up the mandate to supply iron ore fines to Indian steel producer Neelachal Ispat Nigam Limited (NINL), sources at the trading firm said on Thursday, December 27.
To mark the beginning of raw material supplies to NINL, the trading firm has floated a tender to procure 16,000 metric tons of 63.5 percent Fe content iron ore lumps from mines in the eastern Indian state of Odisha.
At the same time, to supply the raw material to NINL steel mill on a long-term basis, MMTC Limited has invited mine owners and traders to supply a minimum of 80,000 mt of iron ore per month which will be procured by MMTC and supplied to the steel mill, the sources said.
By ensuring higher iron ore supplies from MMTC to NINL, the latter expects to produce a minimum of 3,500 mt of pig iron per day from its 1.1 million mt steel mill located in Odisha, the sources added.
MMTC holds a 49.9 percent equity stake in NINL.