Tata Steel Global Minerals Holdings Pte Limited, a wholly-owned subsidiary of Tata Steel and New Millennium Capital Corporation (NMC) are in talks to extend the exclusivity agreement for the development of the Canadian miner's LabMag and KeMag iron ore projects.
Both companies are in talks to extend the exclusivity agreement, which expired on 31 December 2010.
Tata Steel owns 27.4 per cent of Calgary, Alberta-based NMC and 80-per cent stake in the joint venture with NMC for its direct shipment ore (DSO) mining project located in the Canadian province of Newfoundland, Labrador and Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits.
While forming the joint venture in October 2010 (See: Tata Steel in JV with New Millennium for Canada mining project), Tata Steel had received the exclusive right to negotiate and settle a deal for NMC's LabMag and KeMag project by 31 December 2010.b.com
NMC's DSO project contains 64.1 million tonnes of proven and probable mineral reserves at an average grade of 58.8 per cent Fe, 8.1 million tonnes of measured and indicated mineral resources at an average grade of 58.8 per cent Fe, 7.2 million tonnes of inferred resources at an average grade of 56.8 per cent Fe.
The Millennium iron range currently hosts two advanced projects - LabMag containing 3.5 billion tonnes of proven and probable reserves at a grade of 29.6 per cent Fe plus 1.0 billion tonnes of grade of 29.5 percent Fe and 1.2 billion tonnes of inferred resources at an average grade of 29.3 per cent.