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Minerals and Metals Trading Corporation Limited (MMTC) is one of the two highest
foreign exchange earner for India. It is a leading international trading company with a
turnover of over US$ 3 billion. It is the largest international trading company of India
and the first Public Sector Enterprise to be accorded the status of FIVE STAR EXPORT
HOUSE by Govt of India for long standing contribution to exports. MMTC is the largest
non-oil importer in India.




Minerals and Metals Trading Corporation of India Ltd. (MMTC) is India's largest public sector
trading body. Apart from overseeing the export of primary products such as coal and iron ore,
and manufactured agricultural and industrial products, the MMTC also imports much-needed
commodities such as ferrous and nonferrous metals for industry, and agricultural fertilizers.

The Indian subcontinent is endowed with a rich variety of natural mineral wealth. Although
geological surveys were first conducted in the 1840s, when the Geological Survey of India--still
the principal agency for mapping and exploration of minerals today--was created at the
beginning of the 1990s, only 50% of India's total land area had been explored for minerals.

India possesses ample coal and iron reserves, together with significant quantities of bauxite,
gold, ilmenite, manganese ore, and mica. But production levels of cobalt, copper, graphite, lead,
mercury, nickel, sulfur, petroleum, and zinc fall well short of domestic needs. Moreover, the
exploration and removal of mineral resources such as iron ore and bauxite necessitate a high
level of financial investment and technological expertise.

The MMTC has its origins in the 1950s, when, in an effort to boost agricultural and industrial
development, the Indian government determined to earn valuable foreign currency through the
export of canalized bulk mineral ores. Canalization is a process whereby only state companies
may handle the import and export of certain products deemed essential to the country, and where
the end user is invariably a state utility, factory, or some other government undertaking. It is not
a process unique to India.

As a direct result of the government's decision to try and earn larger amounts of foreign
currency, the State Trading Corporation of India Ltd. was founded in 1956 under the Indian
Companies Act, as a wholly owned government subsidiary, to manage the export and import of
selected commodities.
Gradually the MMTC diversified into new areas, over the years gaining responsibility for
importing nonferrous metals, fertilizers, and fertilizer raw materials. But in 1963 the MMTC's
primary responsibility was to oversee iron ore export, formerly the responsibility of the State
Trading Corporation of India.

From 1970 onwards, the MMTC also assumed increasing responsibility for importing nonferrous
metals like palladium (1970), platinum (1970), aluminum (1971), zinc (1971), lead (1971),
nickel (1971), tin (1972), and copper (1972). But, as in the case of exports, the Indian
government's policy on canalization decreed that imports of certain other metals were channeled
only intermittently through the MMTC. Examples include cobalt and mercury, between 1972 and
1976; zinc dust, between 1971 and 1976; and stainless steel, between 1970 and 1984. Aluminum
was decanalized in 1990, and tin in 1991

The mid-1980s proved to be a significant turning point in the history of the MMTC's
development. Until 1983, it had acted merely as a conduit for the import and export of key raw
materials essential to the continued development of Indian agriculture and industry, but
burgeoning trade deficits and increasing foreign exchange difficulties led to a need for
substantially increased exports in order to earn desperately needed foreign currency

The launching of the government's seventh Five Year Economic Development Plan in 1985 saw
the MMTC developing into the country's leading export house--a position it still holds--
generating ever larger volumes of foreign exchange through its exports. To facilitate this process,
the company adopted an increasing number of innovative strategies such as link deals,
countertrade, and project exports. By the end of the 1980s, the MMTC's stated intention was to
be able to generate sufficient export earnings to offset almost completely its foreign exchange
requirements for imported raw materials.

The MMTC's capital base has expanded in line with the group's overall expansion, partly through
the issue of bonus shares, of which there have been seven over the years. From an initial
government contribution of Rs30 million in 1991, the MMTC's capital base stands at Rs500
million. As of March 31, 1991, the MMTC's net worth was Rs3.42 billion, of which Rs500
million were share capital, and Rs2.92 billion were reserves.

From its first full year of operation in 1964-1965, the MMTC has displayed an impressive 75-
fold increase in turn-over from Rs680 million to Rs50.97 billion for 1989-1990. Most
spectacular has been the increase in monies derived from the export of non-canalized agricultural
and industrial products. Between the financial years 1984-1985, and 1989-1990 respectively,
revenue rose from Rs200 million to Rs5.25 billion, boosting overall export figures from Rs3.76
billion to Rsll.48 billion for the same period. At the same time, imports grew from Rs23.89
billion to Rs39.15 billion, increasing total turnover from Rs27.75 billion to Rs50.97 billion

The MMTC's interests in the 1990s cover every part of India's economy related to foreign trade.
Its principal activities remain the export of primary and manufactured products, but also involve
importing industrial commodities such as ferrous and nonferrous metals; fertilizers and fertilizer
raw materials; third country trading, which involves importing a product from a foreign country
and selling it to a third country at a profit without importing the commodity into the trading
country; countertrade; acting as an agent and representative for domestic producers; domestic
trade in bulk raw materials; providing insurance, shipping, financing, transportation and
warehousing services for Indian exporters; and entering into joint ventures in mining,
transportation, manufacturing, trading and the building of infrastructures

   

Incorporation Year 1963
Core - 1 Scope Complex,7 Institutional Area Lodhi Rd,
Registered Office New Delhi,
New Delhi-110003
Telephone 91-11-24362200/1889
Fax 91-11-24366675/0724
Chairman Sanjiv Batra
Managing Director Sanjiv Batra
Company Secretary Manohar Balwani
Auditor N K Bhargava & Co
Face Value 10
Market Lot 1
Listing Chennai,Delhi,Kolkata,Mumbai,NSE
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Registrar F-65 1st Floor,Okhla Industrial Are,Phase-I,New Delhi-110020

BSE Code 513377 Group Govt of India Market Cap 184,409.00

NSE Code MMTC Chairman Sanjiv Batra Market Lot 1
ISIN Demat INE123F01011Industry Trading Face Value 10
?

State Owned Company

SCOPE Complex Core 1 7, Institutional Area Lodi Road, New Delhi, 110 003, India


(11) 36 22 00
!(11) 36 22 24
" 3,825
Rs50.97 billion (US$2.81 billion)

   1963
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Four Decades of Global Excellence

MMTC continues to lead India's foray in mineral exports with global success for four decades by
redefining standards of global excellence by customer satisfaction worldwide. It continues to be
the largest supplier of Iron Ore, handling about 15% of India¶s total exports.

MMTC has managed with commendable elan the bulk operations spread across far - flung areas
in the mineral rich states of the country and by exporting minerals from all the major ports of
India, thus utilizing the extensive network of infrastructure facilities.

MMTC's drive for excellence is reinforced by its marketing thrust in traditional markets like
Japan and S. Korea and Pakistan. MMTC is the catalyst in developing the Chinese market for
Indian Iron Ore.

MMTC, India's largest foreign trade enterprise, reiterates its commitment to augment India's
share in the global market for minerals and ores. For our consistent and sustained performance in
the global arena, we deeply thank our valued patrons, associates and partners who have helped us
reach the pinnacle of global standards.










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MMTC Limited, India¶s first Super Star Trading House, continues to be the country's
leader in mineral exports for four decades now. During the last decade, MMTC could
withstand the stiff competition in the world market by its continuous and persistent efforts
in diversifying its markets, enlarging its product range, expanding extensively its
infrastructure facilities and expertise in mineral operations, and by attaching utmost care and
importance to its trade commitments as also the quality of service and products.

MMTC has been consistently striving to enhance its competitiveness in the area of value
addition. It has set up a crushing and screening plant at Banehatti in Bellary Hospet Sector not
only to source higher value realization in the international market but also to compete with the
international suppliers like Australia and Brazil in the markets like Japan and South Korea.

has provided further fillip to value addition to minerals. The 1.1 million ton Steel Plant
consumes about 2 million tons of various types of minerals annually being supplied by MMTC.
The company has also taken an initiative to link import of capital equipments required for
modernizing mining activities in the country to promote export of minerals. The import of the
earthmoving equipments was linked to export of Iron Ore under EPCG scheme.


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MMTC¶s role in the Nation¶s mineral export does not stop with increasing the volume. MMTC
has been making certain strategic plans which would facilitate in not only sustaining the present
sevel of exports but, also equip the country to meet the challenges of larger volume of exports in
future.

One of the bottlenecks in increasing the Indian Iron Ore exports is the deficiency in port facilities
especially in the East-Coast where the operations are free from the vagaries of weather like,
closing of port operations during the monsoon period in Goa, Mangalore, Bellikari etc. In this
direction, MMTC has been successful in obtaining an exclusive right to develop a temporary
Iron Ore Terminal at Ennore near Chennai. This facility has become operational from July¶04.
MMTC had already made shipments of over 0.5 million tons from Ennore Port despite various
teething problems. MMTC is also in constant dialogue with the various Ministries , Railways,
Ports and exporters to assess the development potential for a comprehensive infrastructure
requirements for larger volume of exports. MMTC will continue to play a vital role in these
directions.


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? IRON ORE

? MANGANESE ORE

? CHROME ORE

? OTHERS

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MMTC exports Iron ore to Japan, South Korea, China, Middle East etc. The export is both on the
basis of long term and annual spot contracts.

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MMTC's performance in mineral trade has been acknowledged by the CAPEXIL (Chemicals and
Allied Products Export Promotion Council) by conferring the nation's highest award for
excellence in mineral exports 18th time in succession.

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MMTC's mineral sales are on FOB basis only new.
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MMTC (A Govt. of India Enterprise) - India's Single Largest Trader of metals. It's metals division
imports and exports Non-Ferrous metals, Industrial raw materials, Steel items, Pig Iron, Non Ferrous
metals scrap and Iron and Steel scrap etc. MMTC's share of import in India's import of refined base non-
ferrous metals in terms of value is about 20%.


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MMTC imports following metals as per LME deliverable specifications and also Non LME
grade material according to the requirements of our customers:

? Base Non-Ferrous Metals: Copper (min. 99.90% purity) in the form of Wire bars,
Cathodes, CC rods Aluminium (min. 99.70%) Zinc Ingots High grade (min. 99.95%)
Zinc Ingots Spl. HG (min. 99.995%) Lead Ingots (min. 99.97%) Tin (min. 99.85%
purity) Nickel (min. 99.80% purity ) (Squares 4''x4'' ,uncut,Briquettes, Ferro Nickel etc.)

? Minor Metals : Antimony (min. 99.65% purity) Silicon (Grade 4-4-1 and 5-5-3)
Magnesium (min. 99.9% purity) Mercury (min. 99.9% purity)

? Industrial Raw Materials, Noble metals and ferro alloys

? Pig Iron, Slag, Steel scrap, HR Coils, CRGO and Steel items

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MMTC imports quality material conforming to international specification viz. ASTM or BSS or
LME approved brands. Most Customers of MMTC are institutional buyers who have stringent
quality norms for accepting the raw materials. Quality Certificate from Producer/ LME approved
assayer is essentially a part of MMTC's purchase contract.




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MMTC imports non-ferrous metals generally on CIF/C&F Main Indian Ports basis. The
purchase price is based on the LME cash settlement price plus premium. A variety of tailor-made
pricing options to suit the requirements of different customers like monthly average price,
flexible quotational period from date of order to 10 days after B/L date, spot pricing etc. are
offered.

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There is a wide network of Sale outlets spread all over India. Major Sale outlets are as follows:

North Zone: Ludhiana and Faridabad;

West Zone: Mumbai and Ahmadabad;
East Zone: Kolkata, Bhubaneswar and Jamshedpur;
South Zone: Chennai, Bangalore, Hyderabad and Cochin;

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Customers have the following options for purchase:

? High Seas basis

? Ex-godown basis

? Ex-bond basis
MMTC imports metals with split Bill of Lading to cater to the need of small customers
who want to buy on high-seas basis. Special incentives are also given to regular
customers.

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Market Information to assist the customer in Pricing : MMTC's in-house Dealer Room monitors
Real Time Information on LME prices of all base non-ferrous metals and also the exchange
rates. Support services in the form of market intelligence is also provided to the customers, if
they so desire.
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MMTC's import and sale of non-ferrous metals is handled by an expert team of professionals
with a dedicated product portfolio.

Management of Price volatility risk through use of hedging instruments: MMTC was the
first Indian company to obtain RBI's approval for hedging in base non-ferrous metals through
London Metal Exchange. Various hedging tools can be used by customers to cut down the price
volatility risk of non-ferrous metals purchased through MMTC.

High credibility: MMTC has always lived up to its commitments because of which it has a very
high credibility among the international suppliers.

 
 


Coal and Hydrocarbon is identified as one of the core areas of business for MMTC and Steam
coal is identified as a thrust product for import. The coal and hydrocarbons business has achieved
a turnover of Rs 18390 million in 2004-05. The above turn over is comprised of mainly LAM
COKE, Coking Coal and steam coal.

During 2004-05 MMTC transacted a business of around 1.10 million tons of Coking Coal, 0.50
million tons of LAM COKE and 1.39 million tons of steam coal. A quantum jump both in value
and quantity of coking coal and non-coking steam coal ± total 6 million tons valued at Rs.2500
Million - is expected during 2005-06.

MMTC withstood the stiff competition due to its continuous and persistent efforts in diversifying
its markets, offering value added products and services to its existing customers, enlarging its
product range and customer base, expanding extensively its infrastructure facilities, using its
expertise in trading by attaching utmost care and importance to its trade commitments as also the
quality service and product.

Certain specific strengths of MMTC, which make it a strong player in this sector are :

? Strong business relationship with the leading coal mines and reputed suppliers of various
coal and hydrocarbon products. A list of suppliers whose credentials are established are
also updated from time to time. They are retained by MMTC for sourcing.

? Elaborate infrastructure facilities for bulk handling with arrangements for rail and road
transport, warehousing, port and shipping operations, which gives MMTC complete
control over trade logistics.

? One of the biggest International traders in bulk in the country.

? Importing non-coking steam coal continuously for the power plants under long-term
contracts.
All along MMTC is very successful in organizing supplies of Coking coal, non-coking (steam)
coal, low ash metallurgical coke, Naphtha etc. MMTC is catering to the requirements of various
customers, inclusive of State Electricity Boards and Power Utilities. Currently there is big gap
between demand and supplies of non-coking coal in the domestic market, which is likely to
widen further in 2006-07. Therefore many of the SEBs are importing steam coal for techno-
economic reasons. The quality of imported coal is superior with high GCV and lower ash, which
leads to lower costs and environment friendly generation of power.

MMTC is one of the largest importers of LAM COKE in India. LAM COKE is imported by
MMTC for various customers like NINL, SAIL, RINL, KIOCL, and IDCOL and also for some
private companies. MMTC imported of LAM coke on a regular basis for MMTC promoted
Neelachal Ispat Nigam Limited, Duburi, Orissa. With the commencement of commercial
production of Coke Oven by NINL, MMTC has tied up for import of nearly 1.4million tons of
coking coal annually for captive consumption at NINL.

Concerted efforts are also made to meet the requirements of small customers whose off take is
less than shipload by clubbing similar requirements. Coal Division also organises financing of
import transaction of coking coal and Lam Coke. The Division also undertakes marketing of
high quality LAM coke and coal tar produced by Neelachal Ispat Nigam Ltd. The LAM coke
produced at NINL has moisture content of 1% maximum, compared to 4- 5% moisture in normal
coke, which is due to dry quenching process.

   
MMTC Limited (A Govt. of India Enterprise) is a global player in the Agro trade, with its
comprehensive infrastructural expertise to handle agro products. MMTC Limited provides full
logistic support from procurement, quality control to guaranteed timely deliveries of agro
products from different parts of India through a wide network of regional and port offices in
India and its contacts abroad—
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Reliable established supplier/buyer having over 3 decades of experience in the trade.

Exporting/Importing in bulk.

Sourcing from established suppliers.

Securing competitive prices through bulk buying.

Strong links with government & state marketing agencies.

Recognized as the best quality supplier of Agro products.

Large warehousing facilities having proximity to rail-heads and ports.

Well controlled logistics for movement of goods.


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? Wheat

? Rice

? Maize

? Soyabean Meal

? Sugar

? Edible Oil

? Pulses


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MMTC Limited (A Govt. of India Enterprise) is one of the largest importers of Fertilizers in
India. It imports both finished fertilizers, fertilizer intermediaries and fertilizer raw materials.
The volume of trade in fertilizers today stands over one million tonnes. MMTC has established
itself as a trusted and reliable supplier of fertilizers with major consumers in India. This is result
of a very high level of reliability and the resultant reputation that MMTC has so assiduosly built
over the last four decades.

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MMTC has remained one of the largest institutional buyers of fertilizers across the globe.
MMTC has built this unique position through its continued presence for about four decades in
the fertilizer arena internationally. MMTC has been successful in building confidence both
amongst its suppliers as well as its buyers in India and abroad through its unstinted transparency
in dealings and commitments to contractual terms of international trade. MMTC, through these
four decades of buying, selling and net-working, has created a strong leverage for itself,
benefiting both the suppliers as well as the buyers. It thereby adds value in the supply chain with
its reliable sourcing ability.

Thus, MMTC remains the single unique window for buying and selling of all fertilizer products
globally. We re-assure all our valued business associates the most transparent, efficient and
effective trading experience in fertilizers.


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? Muriate of Potash (MOP)

? Sulphur

? Urea

? Ammonia

? Rock phosphate

? Phosphoric acid


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MMTC Limited, (A Govt. of India Enterprise) is India¶s Premier bullion trader, handling more
than 100 MTs of Gold & 500 MTs of Silver. The Precious Metals Division has consistently
contributed considerable proportion of the total turnover of the Company.

MMTC¶s Precious Metals Division is in to a range of activities covering imports, exports and
domestic retail trade. It helps in promoting exports from India by holding exclusive foreign
exhibitions of gold and studded jewellery at chosen overseas locations. Export activity is also
augmented through MMTC¶s four exclusive jewellery Duty Free Shops located at the Departure
Lounges of the International Airports at Mumbai, Chennai and Thiruvananthapuram. The
company supplies gold and studded jewellery as per international standards to these duty-free
shops.

MMTC is an authorized agency of the Government of India for import of gold, silver, platinum,
palladium, rough diamonds, emeralds, rubies and other semi-precious stones and supplies these
items to jewellers in India for domestic sales and exports. It is one of the custodians of the
Diamond Plaza Customs Clearance Center in Mumbai.

The company also operates an in-house assaying and hallmarking unit at New Delhi for testing
purity of gold. MMTC has received Bureau of Indian Standards (BIS) certification for its
assaying and hallmarking unit at Jhandewalan, New Delhi. MMTC also has a unit in New Delhi
for manufacturing its own brand of gold and silver medallions since the year 1996. Customized
requirements for corporate/institutional orders are serviced from here throughout the year. In the
year 1999 the company launched sale of Sterling Silverware of 92.5% purity under the brand
name ³SANCHI´ in the domestic market, which has been a tremendous success. Plans are afoot
to launch this range of ³SANCHI´ silverware for exports as well.

The company also operates an in-house assaying and hallmarking unit at New Delhi for testing
purity of gold. MMTC has received Bureau of Indian Standards (BIS) certification for its
assaying and hallmarking unit at Jhandewalan, New Delhi. MMTC also has a unit in New Delhi
for manufacturing its own brand of gold and silver medallions since the year 1996. Customized
requirements for corporate/institutional orders are serviced from here throughout the year. In the
year 1999 the company launched sale of Sterling Silverware of 92.5% purity under the brand
name ³SANCHI´ in the domestic market, which has been a tremendous success. Plans are afoot
to launch this range of ³SANCHI´ silverware for exports as well.