MMTC, India's largest foreign trade enterprise, recorded a sharp rally in share prices for the second day after the Union Cabinet on Wednesday gave its approval to renew long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore during the three year period from April 2015 to March 2018. The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year and will be supplied primarily from the mines of NMDC. The contract will be executed by MMTC.

Iron ore of higher grade have been supplied by India to Japan and South Korea under long term agreements during the last four to five decades. The renewal of long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore will help utilize surplus production of iron ore currently available in India. It will also strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc, according to a government statement issued, Jun. 24, 2015.

Shares of the company are trading at Rs 56.45, up Rs 2.15, or 3.96% at the Bombay Stock Exchange (BSE) on Friday at 9:41 a.m. Total volume of shares traded on the bourses today was higher by 1,046.76% to 2,743,056 compared with 22-day average volume of 239,200.