State-owned trading giant MMTC has inked pacts with Japanese and South Korean steel companies including Posco, to supply 2.8 million tonnes of iron ore annually for a period of three years.

"We have signed iron ore supply contracts with five Japanese firms and one South Korean company for a period of three years. The exports are expected to start from July this year,"

A day after Maoists killed six CISF personnel and a driver inside the biggest iron ore mining facility in the country, the National Mineral Development Corporation (NMDC) complex here remained unguarded. Locals dropped in, “examined” the damaged Bolero, went through belongings of the deceased, noted the bullet marks and clicked photographs and made video films, even picking up the occasional empty shells.

India’s iron ore exports are set to fall to a new low this financial year, owing to multiple problems, such as shortages in Karnataka, Odisha and Goa, high export duty and differential railway freight. Compared to 2011-12, which witnessed a year-on-year decline of 38.5 per cent in exports at about 60 million tonnes, the current year (2012-13) may see an all-time low of 45-50 mt, a drop of 16-25 per cent over last year.

“We are not in a position to make any estimation for exports during the current year. But, going by the prolonged ban on mining in Karnataka, restriction on mining in Odisha and Goa, along with a high railway freight rate and 30 per cent export duty, export of iron ore is no longer a viable proposition,” said R K Sharma, secretary general, Federation of Indian Mineral Industries (Fimi).

New Delhi NMDC has decided to go full throttle in securing at least three mines in Russia for about Rs 1,600 crore. Besides, the navratna company will also invest 1,75,950 Australian dollars (Rs 95,02,162) for buying out 50 per cent stake of Legacy Iron Ore Ltd’s mines in Australia within two months.

In its meeting on April 16, the NMDC Board deliberated extensively on the company’s proposals to acquire the three mines in Russia and directed that the PSU should commence an internal due diligence on acquiring the South Coal project in Rostov owned by Cyprus-based Coal Mining Investments Ltd having reserves of 364 million tonne.

Chennai: State-run iron ore miner NMDC’s decision to increase ore prices by 10% has put the steel industry in a corner, most of whom were expected to announce price increases over the next few days. NMDC has said the prices of iron ore lumps have been increased by 10 % and fines by about 8% ranging from Rs 250 to Rs 400 per tonne. Higher grade ore lumps with 65% iron content are now priced at Rs 5,400 a tonne, while the fines with 64% iron are priced at Rs 2,800. Iron ore is a key raw material for steel production.

The Odisha government may impose a cap on iron ore production in the state, dealing a blow to the industry reeling under closures, loss of production and a nation-wide crackdown on illegal profiteering. A senior Odisha government official told ET on condition of anonymity that the state has begun work on restricting iron ore production to about 52 million tonnes annually. Odisha produced about 75 million tonnes in 2010-11, a third of the country’s annual output of about 218 million tonnes.

A conservator of forests and a former official of the mining department, who are accused of being key players in the illegal iron ore mining racket perpetrated by former minister G Janardhan Reddy and his aides, were arrested on Monday by the CBI. The arrests are in connection with an illegal mining case being investigated by the CBI against the Associated Mining Company (AMC) owned by the former minister.

Plans $2 b investment in Madhya Pradesh, Odisha projects

Undeterred by the continued economic downslide in the West and the crisis in the eurozone, Australian mining and iron ore giant Rio Tinto has embarked an ambitious but exciting expansion and growth project with an investment of $15 billion over the next five years in new mines and port facilities to meet the demand from emerging markets such as China and India.

The Centre and Orissa government find themselves on a war footing as the Centre holds the state responsible for stepping on its toes by determining royalty rates of iron ore. Acknowledging complaints from steel producers that the state is executing a royalty regime which is in contravention to the Mineral Concession Rules (MCR), the mines ministry has demanded an immediate clarification from the state and directed it to expressly abolish the system.

Move to ease pricing pressure on ferrochrome and stainless steel players. Beginning second quarter, Odisha's state-owned mining firm will e-auction chrome, an ore essential to make stainless steel. By resorting to auctions, Orissa Mining Corporation is preempting a similar move for iron ore linkages, but more immediately addressing a long pending demand from its suppliers to address the high prices for chrome.