The iron ore, having 64 per cent Fe content, or high grade lumps, will be sourced from NMDC's Chhattisgarh mines and will be exported through MMTC. The Cabinet had approved the agreement last month.
"I have also conveyed to the (Japanese) minister about our Cabinet approval for the renewable of the long-term agreement for the export of iron ore. An inter-ministerial delegation will be reaching Japan within the next two weeks to formally sign the agreement," commerce and industry minister Anand Sharma said at a joint press meet.
Sharma and his Japanese counterpart Yukio Edano were talking to reporters after their bilateral discussions.
"...right now, the agreement which will be signed is for 2.1 mt for this year," the commerce minister said.
The supplies will begin from July and the agreements will be signed for three years, NMDC chairman N.K. Nanda said.
"We will begin the exports from July as the agreements will be signed by May. Prices will be decided on a quarterly basis," he said, adding that the export quantity will increase in next fiscal.
NMDC's iron ore, exported through MMTC, are supplied to leading steel mills of Japan and Korea, including Posco, Kobe and Nippon Steel.