Tata Steel to invest C$175 million in Canadian iron ore mine
28 Oct 2016
Tata Steel Minerals Canada is investing C$175 million, including C$125 million in equity and C$50 million in debt with the Government of Quebec's investment entities, Resources Quebec (RQ) and Investment Quebec (IQ), respectively.
The Tata Group company will start mining operations across Quebec, Newfoundland, and Labrador Peninsula and set up multiple processing facilities, including a beneficiation plant, Tata Steel stated in a stock exchange filing.
Tata Steel Minerals Canada is a joint venture between Tata Steel and Canada's New Millennium Iron Corp, and is 94 per cent owned by the Indian group.
The new project will increase the Canadian entity's stake in the joint venture from 6 per cent to 18 per cent in line with the value of the iron ore assets.
"The investment will result in an 18-per cent equity stake for Resources Quebec in Tata Steel Minerals Canada in line with the carrying value of the investment in Canadian iron ore assets for Tata Steel. Consequently, the shareholdings of Tata Steel and New Millennium Iron will be adjusted to 77.68 per cent and 4.32 per cent, respectively," it further stated.
''The project has consequently enabled the development of infrastructure facilities, including rail, roads, telecommunications and port, that has had significant positive impact on the socio-economic landscape in Quebec, Newfoundland and Labrador,'' Tata Steel stated in its filing.
Tata Steel Group executive director (Finance and Corporate) Koushik Chatterjee said, ''This investment signals the Government of Quebec's co-operation in supporting sustainable development in line with the objectives of its Plan Nord Initiative.''
The company is confident that the Quebec Government's investment will facilitate the implementation of Tata Steel Mineral Canada's future plans of ramping up production, improving cost competitiveness and the development of the mineral deposits in Quebec.
Tata Steel said it has invested in Eastern Canada to set up mining operations across several deposits straddled across the Quebec-Newfoundland and Labrador peninsula and multiple processing facilities, including a state-of-the-art beneficiation plant.
"The project has consequently enabled the development of infrastructure.
facilities, including rail, roads, telecommunications and port, that has had significant positive impact on the socio-economic landscape in Quebec, Newfoundland and Labrador," it added.
Tata Steel stock was trading 1.44 per cent higher at Rs402.55 on the Bombay Stock Exchange (BSE) at noon.
