The Telegraph reported that National Mineral Development Corporation would pass on the duty impact to overseas buyers.

Mr Rana Som CMD of NMDC said that "Our company will be largely unaffected by the imposition of the export duty on iron ore." He added that it exported to Japan and other countries on long term basis where the prices were lower than the spot market rates.

NMDC is currently negotiating with Japan Steel Mills to fix the price for this year’s contract. Brazil’s Vale has approved a 65% increase in prices. But BHP Billiton and Rio Tinto have asked for even more taking into account freight charges.

Mr Som indicated that NMDC would veer towards BHP and Rio rather than Vale.