India's federal cabinet has extended an iron ore supply agreement with Japan and South Korea for another five years.
India's state-controlled trading company MMTC will supply 3.8mn-5.5mn t/yr of fines and lump with an average Fe grade higher than 64pc to South Korean steel producer Posco and Japanese steel mills from 1 April to 31 March 2023. The previous long-term agreement expired on 31 March this year.
Japanese steel mills will be supplied 3mn-4.3mn t/yr, while Posco will get 800,000-1.2mn t/yr. The ore will be supplied primarily by state-controlled mining company NMDC, although some will come from private-sector companies. NMDC will export a maximum of 1.8mn t/yr of lump and 2.71mn t/yr of fines from its Bailadila mines in central India's Chhattisgarh state.
The deal's price was not announced, although MMTC will charge a 2.8pc trading commission on the fob price.
India has been exporting iron ore to Japan since 1963 and South Korea since 1973.
