MMTC to sign iron ore supply pact with Japanese, South Korean companies

Minerals and Metals Trading Corporation (MMTC), a state-owned trading firm, is planning to sign iron ore supply contracts with five Japanese companies and one South Korean company including Posco. The supply contract will be for a period of three years and shipments are expected to start from July 2012. As per the contract, the state-owned unit will supply 3 million tonne (MT) of iron ore per annum to 5 Japanese companies including Nippon Steel Corporation, JFE Steel Corporation and Nisshin Steel. Besides, MMTC will supply one MT of iron ore yearly to South Korean major Posco.

MMTC would supply iron ore (lumps and fines) of grade (plus) 64 Fe, or high grade content, to Japanese and Korean steel mills from country’s largest iron ore miner NMDC's Baildila mines in Chhattisgarh.

Last month, the Cabinet had approved export of iron ore by MMTC to Japanese and South Korean steel mills for three more years.