India Intelligence Report
 

   Ore Export Cut to Japan, Korea

 

 

  • Iron ore quota cut by 50%

  • Export of ore divided among NMDC and MMTC

  • Escalating domestic demand and new steel projects cited as reason

Ministry of Commerce Additional Secretary Christy Fernandez announced fresh agreements where export of iron ore to Japan and Korea will be cut by 50% to a maximum of 6.78 million tons (mts) this fiscal year. In the previous year, export was allowed up to 16.5 mts which included exports to China.

While all of last years iron ore exports was handled by National Mineral Development Corporation (NMDC), this year, exports of iron ore to China will be handled by Government owned MMTC Limited.

NMDC primarily sells high-grade ore with iron content of more than 65 per cent from its Bailadila mines in Chhattisgarh and Donimalai mines in Karnataka. MMTC is the largest exporter of minerals from India.

Fernandez said that exports have been scaled down because of the rise in demand for ore for new steel projects in India. This is a welcome step and exports need to be trimmed down further so only finished goods are exported and not raw materials. India has the best grade of ore in the world.

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