TATA Steel Ltd, through its subsidiary TATA Steel Global Minerals Holdings, is setting up a JV with New Millennium Capital Corp for development of the Direct Shipment Ore 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 completion. The JV agreement envisages formation of a JVC upon closing of the transaction. TATA Steel will fund 100% of the project cost up to CAD 300 million for an 80% equity stake in the JV Company with New Millennium holding the remainder.
Based on historical estimates that are not in compliance with NI 43-101, the project contains a resource of about 100 million tonnes of direct shipping quality ore. New Millennium expects to produce 4 million tonnes per annum of iron ore products from the project.
Subject to completion of a positive feasibility study, regulatory approvals and project financing, the DSO project is expected to start initial production in the second quarter of 2011. TATA Steel will have 100 percent offtake rights.
http://www.steelguru.com/news/index/2009/11/10/MTE5NTg2/TATA_Steel_to_set_up_JV_with_New_Millennium_for_iron_ore_project.html
Monday, November 9, 2009
TATA Steel to set up JV with New Millennium for iron ore project
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