NMDC iron ore exports may dip below 1 mn tonne

State-owned NMDC's exports of iron ore may fall by over 61% to less than 1 million tonne this year from 2.6 million tonne last year, a senior official of NMDC has said.

The official, who declined to be named, said the drop in exports will not impact the financials of the company, as domestic demand and prices are encouraging.

The plunge in exports is primarily due to the delay in issuance of a notification by the government permitting overseas shipment of the mineral resource even after Cabinet approval, the official said.

"Even if we get approval from the government this month or next month, we will consider exports on a pro rata basis. If we start exports in January, we may export around 0.6 or 0.7 million tonne this year. We may not touch the 1 million tonne mark," the official told PTI.

When contacted, NMDC Chairman and Managing Director Rana Som said Cabinet has approved exports by the company to the extent of 2.8 million tonne per year for three years.

He also confirmed that the export entitlement of the company in each year will be determined on a pro rata basis.

NMDC sells fine variety ore at Rs 3,380 per tonne and lumps at Rs 4,600 per tonne.

Total exports of iron ore amounted to 2.56 million tonne during FY11, as against 3.43 million tonne in the previous financial year, a decrease of 25%.

Meanwhile, a team of officials from Minemakers, an Australia-based mining company, is meeting with NMDC officials on a proposed joint venture to develop the Wonarah phosphate deposit in Australia's Northern Territory.