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Mar 13, 2013
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Tata Steel buys iron deposits in Canada
Tata Steel today today bought majority stake in the iron ore resources belonging to Canadian company Labrador Iron Mines for 30 million Canadian Dollars (Rs 163 crore). As per this strategic deal, Labrador Iron will transfer 51% stake in its Howse deposit to Tata Steel Minerals Canada (TMSC). The Howse deposit is estimated to have 28 million tonnes of iron ore resources. In turn, Tata will transfer its 'Timmins 4' deposit having resource of 1.7 million tons to Labrador for 3 million Canadian Dollars (Rs 16.3 crore). This payment is recoverable from sales. Tata can also increase its ownership of Howse deposit to 70% for 25 million Canadian Dollars (Rs 136 crore). The strategic relationship will include potential off-take arrangements and further exploration of Howse deposit. They will also co-operate to develop a rail line that will pass through Labrador Iron's rail yard facilities and connect TSMC’s processing plant with the main rail line.
Source -
http://www.business-standard.com
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