Tata Steel has secured an 80% interest in New Millennium Capital Corp.'s Direct Shipping Ore Project in Canada, enhancing its raw material security and production capacity.

Target Information

Tata Steel has made a strategic investment decision by exercising its option to acquire an 80% interest in the Direct Shipping Ore ("DSO") Project of New Millennium Capital Corp. ("NML") in Canada. This investment involves Tata Steel reimbursing NML for 80% of its costs incurred to date on the DSO Project while also securing funding of up to CDN $300 million to cover capital costs necessary for the project. Tata Steel is committed to purchasing 100% of the DSO project's iron ore products—meeting specific quality standards—at prevailing market prices throughout the life of the mining operation, which is projected to produce 4 million dry tonnes of iron ore annually starting in 2012.

The DSO project has significant potential given the mineral reserves it holds, which include Proven and Probable Mineral Reserves averaging 58.8% Fe. The project will not only enhance Tata Steel’s raw material security but also provide an opportunity for expansion within the broader context of iron ore production in Canada.

Industry Overview in Canada

The mining industry in Canada represents one of the country’s key economic sectors, contributing substantially to the nation’s GDP and employment rates. Canada possesses a wealth of natural resources, including vario