Tata Steel to buy 19.9% stake in Canada miner for $22.6 mln

Written by:
Subscribe to Oneindia News

New Delhi, Oct 1 (UNI) Tata Steel Ltd today said its Singapore-based unit will acquire 19.9 per cent stake in Canadian miner New Millenium Capital Corporation for 22.6 million dollars.

The unit-- Tata Steel Global Minerals Holdings Pte Ltd-- also has an option to acquire 80 per cent in a joint venture that will develop New Millenium's Direct Shipping Ore (DSO) project.

It also holds rights to the entire iron ore output from the project, which is expected to have annual production of four million tonnes from 2010, the company said in a statement.

The DSO project is estimated to hold reserves in excess of 100 million tonnes of direct shipping quality ore.

The company will also have exclusivity until June next to negotiate a transaction for New Millenium's LabMag iron ore property, which holds 3.5 billion tonnes of proven and probable mineral reserves.

Also, it holds a right-of-first refusal in future equity placement by New Millenium and a pre-emptive right for other equity offers by the company.


Please Wait while comments are loading...