By Krishna N. Das
NEW DELHI (Reuters) - India's biggest trading company MMTC Ltd issued a tender on Thursday seeking overseas buyers for iron ore from Goa state, which a company source said marked its entry into the low-grade ore business as mining picks up in the country.
The entry of state-run MMTC, which used to only export high-quality iron ore, could boost shipments of lower grades and coincides with Goa restarting its mining industry.
India was the world's third-largest exporter of iron ore until about three years ago when court action against illegal mining curtailed output in several states. Mines are now resuming operations.
MMTC's tender invited "empanelled buyers" for iron ore in batches of about 60,000 tonnes, saying it would reach out to them once a "shippable lot is organized". (https://bsmedia.business-standard.combit.ly/1NH1JBv)
An MMTC source directly involved in the matter said the company was in talks with miners in Goa to source iron ore for exports.
Also Read
"We are trying to work it out," the source said. "We are looking at low grades because we will have the benefit of the lower duty."
India in April cut the duty on exports of ore containing less than 57 percent iron to 10 percent from 30 percent. The duty on higher grades stays at 30 percent.
Indian steel companies do not have the technology to efficiently use lower grades, meaning that almost all of Goa's output goes to more modern plants in China.
MMTC's interest will widen the buyer base for companies such as Vedanta Ltd , India's biggest private iron ore miner which restarted its Goa operations last week.
Parag Nagarshekar, deputy director of Goa's directorate of mines and geology, said the state had no plans to ask MMTC to export the millions of tonnes of already-mined ore that was at the government's disposal.
(Reporting by Krishna N. Das; editing by Susan Thomas)