September 15,
Tata Steel today said it will acquire 80% stake in an Iron ore mining project in Canada for about Rs 1,350 crore, a move which will help the steel maker boost its raw material supply.
The Direct Shipping Ore (DSO) project is owned by Canada-based New Millennium Capital Corp, in which Tata Steel holds 27.4% stake. The project contains 64.1 million tonnes of proven and probable mineral reserves.
As per the JV agreement, Tata Steel would purchase all the Iron ore products of a specified quality that would be produced from the DSO project. These products would be bought at global market prices.
“It is expected that the JV will produce 4 million dry tonnes per year of Iron ore products commencing in 2012,” the statement said. Iron ore from the project would be shipped to Tata Steel’s European arm Corus.
Source: The Economic Times
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