NMDC ltd — the country's largest iron ore producer and exporter, recorded iron ore production (provisional ) of 5.91 million tonnes (MT) from its mines in Chhattisgarh as on August 31 this year.
The company informed this to the Bombay Stock Exchange (BSE) in its filing while offering details on production and sales of iron ore (provisional) till the month of August this year from its mines in Chhattisgarh and Karnataka.
NMDC from its mines in Karnataka has recorded iron ore production of 4.61 million tonnes during the aforesaid period. The total iron ore production from the company's mines in Chhattisgarh and Karnataka during the aforesaid period stood at 10.52 million tonnes, it informed the BSE.
Notably, NMDC ltd is all set to meet its exports commitments with the Centre recently approving exports under the long Term Agreements (lTAs) to Japan and South Korea through Metals & Minerals Trading Corporation of India (MMTC) for supplying 16.5 million tonnes(MT) of high grade iron ore, officials stated. The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year and will be supplied primarily from the mines of NMDC ltd.
The company is now all set to provide higher grade Indian iron ore from its Chhattisgarh mines to Japanese and South Korean Steel Mills.
Iron-ore exports to Japan and South Korea under lTA are largely made in the country from NMDC ltd’s mines in Bailadila, Chhattisgarh. The export of iron-ore is presently under Open General license (OGl). High-grade iron-ore (+64% Fe) is canalised through MMTC ltd. Exports are determined by availability and international market situations. The company has commenced trial production from its new project 'Bailadila Iron Ore Deposit 11B' in Bastar region of Chhattisgarh.
The Union Cabinet, chaired by the Prime Minister Narendra Modi had earlier given its approval to renew long Term Agreement with Japanese and South Korean Steel Mills for supply of high grade Indian iron ore, during the three year period from April 2015 to March 2018, officials stated.
The contract will be executed by MMTC under the Department of Commerce. The Iron ore of higher grade has been supplied by India to Japan and South Korea under lTA during the last four to five decades. These agreements will help continue this relationship and strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc, officials stated.
The agreement will also help utilise surplus production of iron ore currently available in India, they stated. The Centre has lTAs signed for supply of high grade iron-ore to Japan and South Korea through MMTC ltd. Nearly 23.24 per cent of the country's iron-ore reserve are situated in Chhattisgarh, and a major part of this reserve is found in Bailadila (Dantewada) and Rowghat. This is the reason why there has been a prolonged demand since more than 50 years to establish a steel plant in this region of Chhattisgarh. Keeping this long-pending demand in view, NMDC ltd has also started construction of Steel Plant in Nagarnar area of Jagdalpur, which is underway at an expedited pace.