BL reported that National Mineral Development Corporation will push for a better price for its iron ore with Japanese steel mills & South Korean steelmaker POSCO during negotiations scheduled for the end of the month 2008.

Mr Rana Som C MD of NMDC said that “Though the dates have not yet been finalized, officials have said that the meeting could be either on July 26th or 28th with Japanese steelmakers followed by meeting with officials of POSCO.”

He said that “This time the negotiations are going to be totally different. On previous occasions there were no talks, but a standard increase as applicable to everybody was effected. This time since the price of the ore is being decided depending on the country of origin and because our ore is of very good quality we are hopeful of getting a good deal.”

Mr Som said that “We expect the increase to be similar to what the Australian companies have got because of the good quality of ore that we mine.”

He said that the negotiations would also be a benchmark for determining the price rise for iron ore that is supplied to the domestic steel companies such as Essar Steel, Rashtriya Ispat Nigam Limited & Ispat Industries.

National Mineral Development Corporation sells high grade fines at INR 1,783 a tonne and lumps at INR 2,500. In comparison, the price private miners demand is determined by the price prevailing in the spot market, which is at INR 4,500 to 6,000 a tonne.