Mumbai: Tata Steel Ltd has acquired an 80% stake in direct shipping ore (DSO) project in Canada based New Millennium Capital Corp, the steelmaker said on Tuesday. The DSO project contains 64.1 million tonnes of “proven and probable mineral reserves,” Tata Steel said in a statement. ”
As part of the agreement, Tata Steel will reimburse NML 80% of NML’s cost to date on the DSO Project; arrange funding up to CDN $300 million of capital costs for the Project to earn its 80% share of the JV and commit to take 100% of the DSO project’s iron ore products of specified quality, at world market prices, for the life of the mining operation. It is expected that the JV will produce 4 million dry tonnes per year of iron ore products commencing in 2012.”
”The project’s location, infrastructure and ore quality ensure reliable and consistent source of supply for Tata Steel,” H.M. Nerurkar, managing director of Tata Steel said in the statement.