The Union Cabinet on Wednesday approved renewal of long-term agreements for export of iron ore to Japan and South Korea through the state-run trading company MMTC, according to an official statement.

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The Commerce Ministry release said that the cabinet had approved the renewal of the previous long-term agreements for export for another five years following their expiry at the end of last month.

"Cabinet has approved renewal of long-term agreements (LTAs) for supply of iron ore (lumps and fines) to Japanese steel mills and POSCO, South Korea for another five years (from 1.4.2018 upto 31.3.2023) through MMTC Ltd," it said.

"The current LTAs with Japanese steel mills and POSCO for supply of iron ore for a period of three years expired on March 31, 2018."

The range of quantity of iron ore to be exported would be from a minimum of 3.8 million tonnes per annum to 5.5 million tonnes per annum, it added.

According to the ministry, the high grade "+64% Fe" content iron ore will be supplied to Japanese and Korean steel mills from the state-run NMDC's Bailadila mines in Chhattisgarh.

The existing policy of single-agency operation and exports through MMTC, with a trading margin of 2.8 per cent of free on board (FOB) price, will be continued, it said.

"Export of iron ore under the LTAs would help to strengthen India's bilateral ties with long-standing partner countries, Japan and South Korea," the statement added.