Tata Steel Sign Contract With New Millennium For Iron Ore Mine Shipment
October 12th, 2008Millions of tonnes of iron ore could soon be on its way to the Scunthorpe Corus steelworks from Canada.
The company’s owner Tata Steel has bought itself a stake in the Millennium Iron Range and a potential supplier of more than nine billion tonnes of ore.
The deal is worth 22.6-million Canadian Dollars.
The range, located along Canada’s Labrador Trough, is said to be the largest magnetite resource in the world.
Tata chiefs in Mumbai have confirmed they have entered into a binding agreement with New Millennium Capital Corporation (NML) Canada, making the steel maker a major investor.
Under the deal Tata Steel will acquire almost a fifth of the shares.
It could also acquire an 80 per cent equity interest in NML’s direct shipping ore project (DSO).
The project is said to contain more than 100 million tonnes of direct shipping quality ore.
B Muthuraman, Tata Steel’s managing director said: “Tata Steel Group is pleased to have signed this binding agreement with New Millennium, which gives Tata Steel Group the opportunity to work closely with New Millennium on the DSO and LabMag properties to develop these as a world-class project.
“Subject to the establishment of their economic viability, these projects may prove to be a source for part of the raw materials requirements of Tata Steel Group.
“In view of its geographical proximity, Canada is a favourable location to source raw materials for Tata Steel Group’s European operations.”
Robert Martin, New Millennium president and chief executive officer said: “The agreement with Tata Steel, the world’s sixth largest steel producer, is a decisive corporate event for New Millennium.”
Iron and steel industry trade union Community welcomed the move. A spokesman said: “In the current tough economic climate this offers our members the security and stability that they need.”
Currently the Scunthorpe Corus works ships in more than six million tonnes of iron ore a year from across the world to assist in the production of four million tonnes of steel.
Source: Scunthorpe Evening Telegraph
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