Cabinet allows MMTC to renew iron ore export agreements

New Delhi, Mar 30 (UNI) The Union Cabinet today granted approval to MMTC Ltd to enter into fresh long term agreements with Japanese, Korean and Chinese steel mills and also permitted the mineral trading firm to lower annual ceiling for exports of the iron ore.

Briefing reporters after the meeting, Information and Broadcasting and Parliamentary Affairs Minister Priya Ranjan Dasmunshi said the new agreements would be for five years and would primarily revolve around the quantity commitment and duration of the contract. All the existing arrangements for supply of iron ore come to an end by March 31, 2006.

The iron ore exports from India has been increasing steadily over the years. India today ranks third in the world exports after Australia and Brazil. The National Steel Policy envisages continuous export of iron ore, reaching an export figure of 100 tonnes annually by 2019-20 after meeting the domestic demand.

It will help in increasing in exports of iron ore surplus to domestic demand resulting in, inflow of foreign exchange, and would also enhance economic activities, the minister said.

UNI PC AD DS1432