The Hindu : Business : NMDC asked to review its iron ore pricing policy

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NMDC asked to review its iron ore pricing policy

Special Correspondent

Virbhadra Singh rededicates Panna diamond mine

COMING ALIVE: Union Minister of Steel Virbhadra Singh rededicating the Panna diamond mine of NMDC to the nation at Majhgawan, district Panna, Madhya Pradesh, on Friday.

NEW DELHI: Union Steel Minister Virbhadra Singh on Friday asked National Mineral Development Corporation (NMDC) to review its iron ore pricing policy after its expiry in March next year.

“The Minister observed that the pricing policy of iron ore for long-term contracts and in spot market needs a re-look,” an official statement said. At present, prices are fixed on the basis of international benchmark prices, established on the contracted rate between Australian miners and Japanese and South Korean steel mills.

In response, NMDC Chairman Rana Som said the company would hire a consultant to review the price structure in the next fiscal.

“A consultant will be hired to have a re-look at the pricing mechanism after the present pricing policy expires in March 2010,” he added.

Mr. Virbhadra Singh on Friday rededicated the Panna diamond mine of NMDC in Madhya Pradesh. The mine remained closed for about four years on account of environmental reasons. He said the production capacity of the mine was one lakh carats annually. NMDC was also making efforts to locate alternate diamond resources near Panna. The Minister said NMDC was exploring diamond reserves in Chattarpur district and coal deposits in Shahdole and Umaria districts.

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