MMTC, India’s one of the largest trading house, is all set to export iron ore on behalf of NMDC. The export will carried out on the basis of NMDC’s long term agreement with Japanese and South Korean mills. This will be the 1st iron ore export shipment from NMDC in FY16.
A vessel named ‘MV Vishva Uday’ carrying 77,000 MT high grade iron ore fines is expected to reach Vizag Port by the end of this week.
In addition, as we have reported earlier, NMDC had resumed its iron ore movement to Vizag Port for exports by Oct’15 end. According to the railway movement tracked by SteelMint, the company moved about 13 rakes i.e. 50,050 MT (each rake carrying 3,850 MT) iron ore mainly fines, to Vizag Port. Also, in Nov’15, the company moved around 24 rakes i.e. 92,400 MT iron ore to Vizag Port till 16 Nov’15.
In Mar’15, NMDC got approval for renewal of long term trade agreement for supplying upto 16.5 MnT of iron ore to Korean and Japanese steel mills for three years i.e till Mar’18.
The quantities covered under the agreement will be in the range of 3.8-5.5 MnT per year and will be supplied from NMDC’s Bailadila mines.
In addition, to boost exports, Indian government had also decided to reduce export duty by 20% for NMDC. Current duty applicable for NMDC will be 10% for high grade shipments made under long term agreement.
India has been supplying high grade iron ore to Japan and South Korea under long term agreements since last 4-5 decades.
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