NEW DELHI | Thu Jul 7, 2011
NEW DELHI (Reuters) - India has renewed a deal to supply iron ore to Japanese steel mills and South Korea's POSCO for three years starting 2011, a government statement said on Thursday, a contract that will not affect global prices .
It did not specify the amount of the steel-making commodity to be exported but said the consignments would consist of both lumps and fines of grade +64 Fe content. The iron ore is to be supplied through state-run trading firm MMTC.
The earlier agreement was signed for five years in 2006 . Private exports from India, the world's third biggest supplier of iron ore, have been hit because of higher export taxes, a ban on shipments from a key producing state and the onset of monsoon.
"This will have zero impact on the market as these are regular contracts," said R.K. Sharma, secretary general of the Federation of Indian Minerals Industries (FIMI), which has over 100 iron ore exporters as members , referring to Thursday's government statement.
The iron ore will be sourced from mines of state-run NMDC, which does not export on its own account. MMTC exports about 7-8 million tonnes of iron ore a year.
India exported 85.4 million tonnes of iron ore from April to February, according to FIMI, mostly to China. (sourced Reuters)
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