Minerals and Metals Trading Corporation of India
Encyclopedia
Minerals and Metals Trading Corporation of India Ltd. (MMTC Ltd.) is one of the two highest earners of foreign exchange
for India
and India's largest public sector trading body. Not only handling the export of primary products such as coal
, iron ore, and manufactured agro and industrial products, MMTC also imports important commodities such as ferrous
and nonferrous metals for industry
, and agricultural fertilizers. MMTC's diverse trade activities cover Third Country Trade, Joint Ventures and Link Deals and all modern forms of international trading. The Company has vast international trade network, spanning almost in all countries in Asia
, Europe
, Africa
, Oceania, America
and also includes a wholly owned international subsidiary in Singapore
, MTPL. It is one of the Miniratnas
companies.
MMTC is one of the two highest foreign exchange
earner for India (after Petroleum refining companies) Petroleum
: India's largest foreign exchange earnerhttp://www.rediff.com/money/2007/oct/01petroleum.htm. 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 Government of India
for long standing contribution to exports. MMTC is the largest non-oil Importer in India.
Being the largest player in bullion trade, including retailing
, MMTC's share was 146 tonnes of gold
out of the total import of 600 tonnes of the precious metal in 2008-09.
on 26 September, 1963 at New Delhi. The Corporation started functioning on 1 October. The main objectives of the company was Export
of mineral ores and Import
of essential metals. According to a latest news, MMTC is Asia’s biggest gold and silver importer.
the government decided to authorize the mining
of scarce mineral resources to the public sector
rather than private sector
, although India's National Mineral
Policy
clearly states that it does not "preclude the State from securing the co-operation of private enterprise in the larger interest of the State or with a view to accelerating the pace of development"
Under the Constitution of India
, mineral rights and authority of mining laws remain vested with the state governments. On the other hand, Central government
regulates the development of minerals under the Mines and Minerals (Regulation) Act of 1957.
The MMTC has its origins in the 1950s, when the Indian government, with the interest of boosting agricultural and industrial development, determined to earn valuable foreign currency through the export of canalized mineral ores, which the country had huge deposits of. As a consequence of the government's decision to earn foreign currency, the State Trading Corporation of India Ltd. was founded in 1956, as a wholly owned government
subsidiary
, to handle the export and import of selected commodities.
activities and in view of the importance given to the exports of mineral ores in the country's Five Year Plans, a decision was taken by the Government of India to split the STC and establish another corporation to deal exclusively with the trade in minerals and metals.
Japan
and South Korea
continued to be the major markets till the year of 1994. Then it made a foray into European
market with the exports of one lakh tonnes of iron ore to Slovakia
and Romania
. Also in the same year, the company had commenced import of gold and silver against special import license
for supply to the customers in the domestic area. Imports worth 20 metric tonnes of gold and silver worth 270 tonnes was made and the company opened new gold vaults at Hyderabad and Vizag to offer its services to the customers in these areas. However, manganese ore exports remained depressed due to recession in the steel industry.
The wholly owned subsidiary MMTC Transnational Pte Ltd, Singapore
was incorporated under the control of company in the year 1994 itself. During the year 1995, MMTC opened a duty-free jewellery show room at Chhatrapati Shivaji International Airport and a Memorandum of understanding
was signed with the government of Orissa
for development of existing Gopalpur minor port into an all-weather, deep water and direct berthing port. In the same year, Board for Industrial & Financial Reconstruction (BIFR) had approved the scheme of merger-cum-amalgamation of Mica Trading Corporation of India Limited (MITCO) with MMTC. From the year 1996 onwards, the company started to import the Chemical items and Homeopathic Medicines.
as a duty free business in the year of 2002 and also in the same year unveiled a new line of silverware, Sanchi-Silver in Style. During the year 2003, MMTC had acquired Rs.800 crore deals from Japanese and South Korean companies for the supply of iron ore. In the identical year of 2003, the joint venture with the Orissa government namely Neelchal Ispat Nigam Ltd was emerged as the second largest exporter of pig iron from the country.
The Company was ranked in Trading Sector by Business Standard
in their publication BS 1000 'India's Corporate Giants' released in December 2006 and also noted as Top Company in the trading sector for the D&B by coveted American Express Corporate Award 2006. MMTC bagged a gold trophy for top Exporter for the Year 2006-07 in Merchant Exporter category by Engineering Export Promotion Council of India (EEPC) and also CAPEXIL highest export award for highest export of minerals for the year 2006-07, (16th time in a row). The 15 MW wind farms of the company were commissioned in March of the year 2007 at Karnataka
. In The year 2007, MMTC had received government approval for acquiring an equity stake in the consortium, which has undertaken the project for construction of a permanent iron ore-loading berth at Ennore
to decongest Chennai
port
.
Today MMTC has the distinction of being:
Foreign exchange reserves
Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
for India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and India's largest public sector trading body. Not only handling the export of primary products such as coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
, iron ore, and manufactured agro and industrial products, MMTC also imports important commodities such as ferrous
Ferrous
Ferrous , in chemistry, indicates a divalent iron compound , as opposed to ferric, which indicates a trivalent iron compound ....
and nonferrous metals for industry
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
, and agricultural fertilizers. MMTC's diverse trade activities cover Third Country Trade, Joint Ventures and Link Deals and all modern forms of international trading. The Company has vast international trade network, spanning almost in all countries in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
, Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
, Oceania, America
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and also includes a wholly owned international subsidiary in Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, MTPL. It is one of the Miniratnas
Miniratnas
Miniratna is the status to CPSEs in India given by the government to enhance the financial autonomy of the companies.Category-I Miniratna firms have the power to incur capital expenditure on new projects, modernisation, purchase of equipment without government approval up to Rs 500 while in the...
companies.
MMTC is one of the two highest foreign exchange
Foreign exchange reserves
Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
earner for India (after Petroleum refining companies) Petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
: India's largest foreign exchange earnerhttp://www.rediff.com/money/2007/oct/01petroleum.htm. It is the largest international trading company
Trading company
Trading companies are businesses working with different kinds of products which are sold for consumer, business or government purposes. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products to customers....
of India and the first Public Sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
Enterprise to be accorded the status of FIVE STAR EXPORT HOUSE by Government of India
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...
for long standing contribution to exports. MMTC is the largest non-oil Importer in India.
Being the largest player in bullion trade, including retailing
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
, MMTC's share was 146 tonnes of gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
out of the total import of 600 tonnes of the precious metal in 2008-09.
Foundation
The Company was incorporatedIncorporation (business)
Incorporation is the forming of a new corporation . The corporation may be a business, a non-profit organisation, sports club, or a government of a new city or town...
on 26 September, 1963 at New Delhi. The Corporation started functioning on 1 October. The main objectives of the company was Export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
of mineral ores and Import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
of essential metals. According to a latest news, MMTC is Asia’s biggest gold and silver importer.
State Trading Corporation
After IndependenceIndependence
Independence is a condition of a nation, country, or state in which its residents and population, or some portion thereof, exercise self-government, and usually sovereignty, over its territory....
the government decided to authorize the mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
of scarce mineral resources to the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
rather than private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
, although India's National Mineral
Mineral
A mineral is a naturally occurring solid chemical substance formed through biogeochemical processes, having characteristic chemical composition, highly ordered atomic structure, and specific physical properties. By comparison, a rock is an aggregate of minerals and/or mineraloids and does not...
Policy
Policy
A policy is typically described as a principle or rule to guide decisions and achieve rational outcome. The term is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol...
clearly states that it does not "preclude the State from securing the co-operation of private enterprise in the larger interest of the State or with a view to accelerating the pace of development"
Under the Constitution of India
Constitution of India
The Constitution of India is the supreme law of India. It lays down the framework defining fundamental political principles, establishes the structure, procedures, powers, and duties of government institutions, and sets out fundamental rights, directive principles, and the duties of citizens...
, mineral rights and authority of mining laws remain vested with the state governments. On the other hand, Central government
Central government
A central government also known as a national government, union government and in federal states, the federal government, is the government at the level of the nation-state. The structure of central governments varies from institution to institution...
regulates the development of minerals under the Mines and Minerals (Regulation) Act of 1957.
The MMTC has its origins in the 1950s, when the Indian government, with the interest of boosting agricultural and industrial development, determined to earn valuable foreign currency through the export of canalized mineral ores, which the country had huge deposits of. As a consequence of the government's decision to earn foreign currency, the State Trading Corporation of India Ltd. was founded in 1956, as a wholly owned government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
, to handle the export and import of selected commodities.
1963-2000
The Company had commenced its operation on 1 October 1963. With the rapid growth of the State Trading Corporation (STC) in its direct tradingInternational trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product...
activities and in view of the importance given to the exports of mineral ores in the country's Five Year Plans, a decision was taken by the Government of India to split the STC and establish another corporation to deal exclusively with the trade in minerals and metals.
Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
and South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
continued to be the major markets till the year of 1994. Then it made a foray into European
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
market with the exports of one lakh tonnes of iron ore to Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
and Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
. Also in the same year, the company had commenced import of gold and silver against special import license
Import license
An import license is a document issued by a national government authorizing the importation of certain goods into its territory. Import licenses are considered to be non-tariff barriers to trade when used as a way to discriminate against another country's goods in order to protect a domestic...
for supply to the customers in the domestic area. Imports worth 20 metric tonnes of gold and silver worth 270 tonnes was made and the company opened new gold vaults at Hyderabad and Vizag to offer its services to the customers in these areas. However, manganese ore exports remained depressed due to recession in the steel industry.
The wholly owned subsidiary MMTC Transnational Pte Ltd, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
was incorporated under the control of company in the year 1994 itself. During the year 1995, MMTC opened a duty-free jewellery show room at Chhatrapati Shivaji International Airport and a Memorandum of understanding
Memorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...
was signed with the government of Orissa
Orissa
Orissa , officially Odisha since Nov 2011, is a state of India, located on the east coast of India, by the Bay of Bengal. It is the modern name of the ancient nation of Kalinga, which was invaded by the Maurya Emperor Ashoka in 261 BC. The modern state of Orissa was established on 1 April...
for development of existing Gopalpur minor port into an all-weather, deep water and direct berthing port. In the same year, Board for Industrial & Financial Reconstruction (BIFR) had approved the scheme of merger-cum-amalgamation of Mica Trading Corporation of India Limited (MITCO) with MMTC. From the year 1996 onwards, the company started to import the Chemical items and Homeopathic Medicines.
2000-Onwards
MMTC had signed a MoU with the Department of Commerce under Ministry of Commerce and Industry during the year 2001 for its various applications. The Company had opened a new outlet at ThiruvananthapuramThiruvananthapuram
Thiruvananthapuram , formerly known as Trivandrum, is the capital of the Indian state of Kerala and the headquarters of the Thiruvananthapuram District. It is located on the west coast of India near the extreme south of the mainland...
as a duty free business in the year of 2002 and also in the same year unveiled a new line of silverware, Sanchi-Silver in Style. During the year 2003, MMTC had acquired Rs.800 crore deals from Japanese and South Korean companies for the supply of iron ore. In the identical year of 2003, the joint venture with the Orissa government namely Neelchal Ispat Nigam Ltd was emerged as the second largest exporter of pig iron from the country.
The Company was ranked in Trading Sector by Business Standard
Business Standard
Business Standard is an Indian English-language daily newspaper published by Business Standard Ltd in two languages, English and Hindi...
in their publication BS 1000 'India's Corporate Giants' released in December 2006 and also noted as Top Company in the trading sector for the D&B by coveted American Express Corporate Award 2006. MMTC bagged a gold trophy for top Exporter for the Year 2006-07 in Merchant Exporter category by Engineering Export Promotion Council of India (EEPC) and also CAPEXIL highest export award for highest export of minerals for the year 2006-07, (16th time in a row). The 15 MW wind farms of the company were commissioned in March of the year 2007 at Karnataka
Karnataka
Karnataka , the land of the Kannadigas, is a state in South West India. It was created on 1 November 1956, with the passing of the States Reorganisation Act and this day is annually celebrated as Karnataka Rajyotsava...
. In The year 2007, MMTC had received government approval for acquiring an equity stake in the consortium, which has undertaken the project for construction of a permanent iron ore-loading berth at Ennore
Ennore
Ennore is a suburb in Chennai, India. Ennore is situated on a peninsula and is bounded by the Korttalaiyar River, Ennore creek and the Bay of Bengal...
to decongest Chennai
Chennai
Chennai , formerly known as Madras or Madarasapatinam , is the capital city of the Indian state of Tamil Nadu, located on the Coromandel Coast off the Bay of Bengal. Chennai is the fourth most populous metropolitan area and the sixth most populous city in India...
port
Port
A port is a location on a coast or shore containing one or more harbors where ships can dock and transfer people or cargo to or from land....
.
Today MMTC has the distinction of being:
- Largest exporter of minerals from IndiaIndiaIndia , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
- India's Largest Bullion TraderTrader (finance)A trader is someone in finance who buys and sells financial instruments such as stocks, bonds, commodities and derivatives. A broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them. According to the Wall Street Journal in 2004, a managing...
- One of India's biggest importer of Non Ferrous Metals
- India's largest importer of SteelSteelSteel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
-CoalCoalCoal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure... - One of India's leading importer of fertilizers
- One of India's largest trader of AgroAgricultureAgriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
ProductsProduct (business)In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...
Awards and rankings
Following Awards and Rankings were conferred during 2008-09:- Gold Trophy for being top Exporter for the Year 2006-07 in Merchant Exporter category by EEPC
- CAPEXIL highest award for highest export in Minerals and Ores sector for the year 2007-08, (17th time in a row)
- Niryat Shree Bronze Trophy for the year 2005-06 presented by the Hon'ble President of IndiaPresident of IndiaThe President of India is the head of state and first citizen of India, as well as the Supreme Commander of the Indian Armed Forces. President of India is also the formal head of all the three branches of Indian Democracy - Legislature, Executive and Judiciary...
, in January 2009 in the Highest Foreign Exchange Earner category by Federation of Indian Exporters Organisation (FIEO). - Top Indian Company in the Trading Sector by Dun & Bradstreet in their rankings 'India's Top 500 companies 2008'. In the same publication ranked 13th based on total income for the year 2007-08.
- Ranked as the Highest Wealth Creator PSU by Dalal Street Journal.
- Top ranking in the list of India's top 100 wealth creation companies published by the Times Group and the Economic Times in their publication 'ET500' released in Oct 2008. In the same publication MMTC has been ranked 17th amongst India's biggest companies.
- Ranked 4th amongst India's most valuable Public Sector Companies by 'Business TodayBusiness Today (Business Magazine)Business Today is an Indian fortnightly business magazine published by Living Media India Limited, in publication since 1992. It had a second quarter 2010 readership of 338,000 per issue, ninth among English language magazines surveyed.-External links:...
' in its publication 'BT500' released in November 2008. In the same publication, ranked at 6th place amongst 10 most valuable companies. - Ranked 12th in the list of India's Top PSUs 2009 released by Dun & BradstreetDun & BradstreetDun & Bradstreet is a Fortune 500 public company headquartered in Short Hills, New Jersey, USA that provides information on businesses and corporations for use in credit decisions, B2B marketing and supply chain management...
.