BENGALURU : India’s NMDC is unable to export low-grade iron ore to China, the country’s biggest iron ore customer, due to logistics issues, a source with direct knowledge of the matter told Reuters.

The miner did not immediately reply to a Reuters email seeking comments.

“There is a severe shortage of rakes to move the ore anywhere in the country which is affecting exports,” the source said, declining to be identified as details of the challenges are not public.

China imports around 80 per cent of India’s overall shipments.

Indian producers of low-grade ores largely depend on foreign markets because most major domestic steel producers use high-grade iron ores.

Separately, NMDC is also on track to receive forest clearances for diamond mining in the central Indian state of Madhya Pradesh, the source said.

The mine produces around 10 carats of diamond per 100 tonnes of Kimberlite processed, according to details provided by the company’s website.

Meanwhile, the company’s joint venture with Australia’s Hancock Prospecting Pty was yet to start lithium production, the source said.