9th Nov 2009 12:21
Tata Steel enters into Joint Venture Agreement with New Millennium, Canada
Mumbai, November 9, 2009 - Tata Steel, through its subsidiary, Tata Steel Global Minerals Holdings has entered into Joint Venture Agreement on 6th November 2009 with New Millennium Capital Corp. ("NML") (TSX-V: NML) and LabMag Limited Partnership (through its General Partner) for development of the Direct Shipment Ore (DSO) Project in Canada. The feasibility study for the DSO Project is underway based upon which Tata Steel may make its investment decision within 180 days from delivery of feasibility to Tata Steel. The JVA envisages formation of a Joint Venture Company (JVC) upon closing of the transaction subsequent to a notice of Joint Venture Investment being delivered to NML by Tata Steel. On the decision to develop, Tata Steel will arrange to fund 100% of the project cost upto C$300 million for 80% equity stake in the joint venture company with NML holding a 20% stake.
DSO Project contains, based on historical estimates that are not in compliance with NI 43-101, a resource of about 100 million tonnes of direct shipping quality ore. NML expects to produce 4 million tonne per annum of iron ore products from the DSO Project. Subject to completion of a positive feasibility study, regulatory approvals and project financing, the DSO Project is expected to start initial production in Q2 of 2011. Tata Steel will have 100% offtake rights for the production from the project.
H M Nerurkar Managing Director, Tata Steel said, "Tata Steel supports New Millennium's efforts to advance the DSO Project to production. We are now awaiting the Feasibility Study which will reflect a technically feasible and financially viable project."
Robert Martin, New Millennium President and CEO, said, "With this joint venture agreement we are closer to seeing the DSO Project enter production and this will help advance the DSO Project when final approval is made. We are working closely with Tata technical personnel, both in Canada and India, to complete all work that is expected to support a positive project decision. New Millennium's project complements Tata Steel's strategy to increase self sufficiency in raw materials with supplies from captive sources for their wholly owned UK and European subsidiary."
About Tata Steel
Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group (including Corus) is one of the world's largest steel producers with an annual crude steel capacity of over 28 million tonnes. It is now the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. The Tata Steel Group, with a turnover of $29 billion in FY '09, has over 82,700 employees across five continents and is a Fortune 500 company. Tata Steel India is the first integrated steel plant in the world, outside Japan, to be awarded the Deming Application Prize 2008 for excellence in total quality management.www.tatasteel.com
About New Millennium
New Millennium holds a 100% interest in the KéMag Property (Quebec) and an 80% interest in the LabMag Property (Newfoundland and Labrador). The remaining 20% is owned by Naskapi Nation of Kawawachikamach. Both properties are located within the Millennium Iron Range, the centre of which is located approximately 230 km north of Labrador City, NL and 40 km northwest of Schefferville, QC. The Company owns DSO claims in NewFoundland & Labrador and Quebec that contain, based on historical estimates that are not in compliance with NI 43-101, resource of about 100 million tonnes of direct shipping quality ore.
For further information, please visit www.nmlresources.com.
Contact
Tata Steel Limited
For investor enquiries contact:
Mr. Sandip Biswas
Tel : + 91 22 6665 7328 / 7298
e-mail : [email protected]
Mr. Praveen Sood
Tel : + 91 22 6665 7306
e-mail : [email protected]
For media enquiries contact:
Mr. Sanjay Choudhry
Tel : + 91 657 243 1142
e-mail: [email protected]
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