The major companies exporting iron ore from the country, MMTC and the National Mineral Development Corporation (NMDC), would go in for a higher realisation from iron export when they negotiate the supply contract with Japan and South Korea.
This was decided at a meeting of the Committee of Secretaries chaired by the Cabinet Secretary, Mr K.M. Chandrasekhar, to sort out the difficulties encountered by national mineral companies in the face of the levy of export tax of 15 per cent announced by the Government in order to make the domestic availability of the raw material for steel companies affordable at a time when steel prices do not show any let-up in their rise.
Highly placed sources in the Government told Business Line here that since the Australian iron ore companies have obtained a 96.5 per cent hike in their iron ore price from the importing countries, Indian companies too should negotiate with the Japanese and South Korean companies using this as a floor price to cushion the impact of export levy and spurt in freight cost for the iron ore producers.
They said as these companies renegotiate with their importing companies in Japan and South Korea this year around, they should get a minimum of 96.5 per cent hike as compared to the realised sale price last year.
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