Sierra Leone and Tunisia signed an agreement in New Delhi on Tuesday (16 September) clearing the way for the formal establishment of the Iron Ore Exporting Nations Association.
Sierra Leone and Tunisia signed an agreement in New Delhi on Tuesday (16 September) clearing the way for the formal establishment of the Iron Ore Exporting Nations Association. India has been a prime mover behind the establishment of the association.
Members of the association have said that it will not be a price fixing cartel, but will start with the exchange of information and mining techniques, and increased marketing co-operation.
The Ambassador of Sierra Leone to Peking, Mr. Lloyd Randall and the Ambassador of Tunisia to Iran, Dr. Abdul Hamzaoui, signed the agreement with the Indian Secretary of State for Foreign Affairs, Mr. Shri V.C. Trevedi Chairing the meeting.
With these signatures, nine counties have now signed the agreement which comes into formal affect from 12 October, 1975.
Countries that have already signed are: Algeria, Australia, Chile, India, Mauritania and Venezuela. Brazil and Sweden, are a expected to sign shortly. Canada another iron ore producer has not indicated whether it will sign.
It was in 1974 that moves to form the association began with India playing a key role along with Brazil and Australia. All three reached an understanding on forming the association.
Although officially, the association officials have denied members will fix prices, reports from New Delhi have said that an aim of the association will be ensure better prices for iron ore exports form member countries.
According to the reports, India has already won better prices from Japan and some east and west European nations, after bilateral negotiations.