NMDC (National Mineral & Development Corporation) has recently resumed iron ore movement to Vizag port for export.
According to recent railway movement tracked by SteelMint, the company moved about 10 rakes i.e. 38,500 MT (each rake carrying approx 3,850 MT) iron ore (mainly fines) to Vizag port.
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 over three years till Mar’18. India has been supplying high grade iron ore to Japan and South Korea under long term agreements since last 4-5 decades.
In addition, to boost exports, Indian government has recently 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.
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.
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