Tata, partners to invest $379 mn in Australian coal mine

Tata, partners to invest $379 mn in Australian coal mine
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First Published: Wed, May 07 2008. 12 39 PM IST
Updated: Wed, May 07 2008. 12 39 PM IST
PTI
New Delhi: As part of its efforts to ensure raw material security, Tata Steel along with Brazilian mining giant Vale and other joint venture partners will undertake a massive expansion of the Carborough Downs Coal Mine in Australia for about $379.41 million.
“The commencement of construction is scheduled for May 2008 and commissioning of the large scale and new mining equipment (Longwall) is expected by mid 2009,” a company release said.
“This decision on expansion of production at the Carborough Down Coal Mine in Australia gives Tata Steel an opportunity to explore larger areas for coal deposits which will be a potential source to meet part of the Company’s raw material requirement and enhance the long term competitiveness of its global operations,” the company said.
Carborough Downs is an underground mine operated by Carborough Downs Coal Management Pty Ltd.
Around 80% of the mine is owned by Vale and its joint venture partners including Tata Steel, Nippon Steel Corporation, POSCO, JFE Steel and JFE Shoji.
Tata Steel, Nippon Steel Corporation and POSCO own 5% stake each in Carborough Downs Coal Mine while JFE Steel and JFE Shoji holds 2.5% stake each.
Carborough Downs Coal Mine, started its production in August 2006. After completion of the plan, Carborough Downs JV would expand its underground production by Longwall method.
This investment would ensure 4.9 million tonnes of annual production of Run of Mine (ROM) to yield 3.7 million tonnes of Coking Coal and PCI Coal from Q32009.
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First Published: Wed, May 07 2008. 12 39 PM IST