MMTC and NMDC saw divergent trend at 9:55 IST on BSE after the government approved the renewal of agreement for supplying up to 16.5 million tonnes of high grade iron ore to steel plants in Japan and South Korea over three years till March 2018.
NMDC was down 0.21% at Rs 117.40.
MMTC was up 13.59% at Rs 52.25.
The S&P BSE Sensex was up 27.10 points, or 0.10% at 27,756.77.
The Union Cabinet yesterday, 24 June 2015, gave its approval to renew long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore during the three year period from April 2015 to March 2018. The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year and will be supplied primarily from the mines of NMDC. The contract will be executed by MMTC.
Iron ore of higher grade have been supplied by India to Japan and South Korea under long term agreements during the last four to five decades. The renewal of long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore will help utilize surplus production of iron ore currently available in India. It will also strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc, according to a government statement issued after trading hours yesterday, 24 June 2015.
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