Tata Steel to invest $175 million in Canadian mine

Tata Steel 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.

By: Express Web Desk | New Delhi | Updated: October 28, 2016 10:07 am

Tata Steel Minerals Canada in collaboration with its parent companies have signed Definitive Agreements for concluding investments of C$ 125 million as equity and C$ 50 million as debt with Government of Quebec’s investment entities, Resources Quebec (RQ) and investment Quebec (IQ) respectively, totaling C$ 175 million. Tata Steel 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 in the socio-economic landscape in Quebec and Newfoundland and Labrador. 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.

Koushik Chatterjee, Group Executive Director (Finance and Corporate), Tata Steel Limited said, “Today we have begun a new chapter in the future of iron ore mining in Eastern Canada. We are pleased to welcome Government of Quebec as a strategic equity partner to Tata Steel in this venture, particularly in these uncertain and challenging times for the global iron ore industry. We are confident that 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.”