NMDC to sign iron-ore contract this week with Japan, SKorea

State-owned mining giant NMDC is likely to finalise the current fiscal's long-term contract prices for iron ore with Japanese and South Korean steel mills within this week, a top government official said.     

A team, led by NMDC Chairman Rana Som, has left for the two Asian countries to negotiate and finalise the prices at which iron ore will be exported.     

Steel Secretary P K Rastogi added, "the contract is likely to be finalised this week."     

The miner is expected to negotiate 33 per cent lower rates on iron ore fines and 44 per cent on iron ore lumps following the global benchmark set by global mining firm Rio Tinto which has settled its 2009-10 long-term contract with Japanese steel mills at such discount.     

The proposed price negotiation holds significance for the domestic steel companies like JSW and RINL as the rate settled by NMDC with overseas firms acts as a benchmark for them.     

Notwithstanding the global financial downturn, Navratna PSU NMDC had clinched a 102 per cent hike in export prices of iron ore from Japanese and South Korean steel mills last year.     

Of its annual iron ore production of about 30 million tonnes, the country's largest iron ore miner had supplied over three million tonnes to Japanese and South Korean steel companies, including Posco, last year.