Long-term agreement for supply of iron ore to Japan and South Korea approved

Question: Recently, Union Cabinet has approved the renewal of Long Term Agreements (LTAs) for supply of iron ore (lumps and fines) of grade +64% Fe content to Japanese Steel Mills (JSMs) and POSCO, South Korea for another five years (i.e. 1.4.2018 upto 31.3.2023) through MMTC Limited. In this regard, which is not true among the given?
(a) Cabinet has sanctioned supply of more than 64 percent of iron content type of iron ore for five years.
(b) This long term renewal agreement will be valid from 1 April 2018 to 31 March 2023.
(c) Exports of iron ore will be 3.50 million tonnes (minimum) per annum.
(d) The quantitative limit of export of Bailadila shells (Lump) will be 1.81 million tonnes annually.
Answer: (c)
Related Facts:

  • On April 25th, 2018, in the meeting Union Cabinet has approved the renewal of Long Term Agreements (LTAs) for supply of iron ore (lumps and fines) of grade +64% Fe content to Japanese Steel Mills (JSMs) and POSCO, South Korea through MMTC Limited.
  • This renewal will be for another five years (i.e. 1.4.2018 upto 31.3.2023).
  • The present LTAs are valid until 31.3.2018. The renewed LTAs with steel mills of Japan and POSCO, South Korea shall be for a period of five years from 1.4.2018 to 31.3.2023.
  • The range of quantity of iron ore to be exported under LTA per annum shall be 3.80 million tons (min.) per annum to 5.50 million tons per annum (max.).
  • This will be for both NMDC and non-NMDC origin iron ore with quantitative ceilings for export of Bailadila Lumps at 1.81 million MTs per annum and Bailadila Fines at 2.71 million MTs per annum.
  • The history of India’s iron ore exports to Japan is almost six decades old and is a consistent component of India’s bilateral relations with Japan.
  • MMTC has been supplying iron ore to JSMs since 1963 and to South Korea since 1973.
  • The current LTAs with Japanese Steel Mills (JSMs) and POSCO, South Korea, for supply of iron ore for a period of three years will expire on 31stMarch, 2018.
  • The Cabinet, in its meeting held on 24.06.2015 had authorized MMTC Limited to engage in Long Term Agreements(LTAs) with Japanese Steel Mills (JSMs) and POSCO, South Korea, for supply of iron ore for a period of three years (i.e. 2015 to 2018).

Reference:
http://www.pib.nic.in/PressReleseDetail.aspx?PRID=1530152
http://pib.nic.in/newsite/PrintRelease.aspx?relid=178900