Tata Steel to review iron ore project in Canada
6 October 2015
Tata Steel today said it will review its agreement with the Alberta-based New Millennium Iron Corporation (NML) on developing iron ore sites in Canada.
Tata Steel, through its wholly-owned subsidiary Tata Steel Global Minerals Holdings Pte Ltd, owns about 26.2 per cent of NML's shares and is its largest shareholder and strategic partner.
NML, in a statement today, announced a "review process for the Heads of Agreement dated March 6, 2011 (HOA) between NML and Tata Steel Global Minerals Holdings Pte Ltd, which governs the Feasibility Study of the Taconite Project (TFS) the two companies are currently engaged in."
Taconite is low grade of iron ore.
As the current macro-economic situation poses challenges for development of the Taconite Project as currently conceived in the HOA, NML and Tata Steel are re-visiting the terms of the HOA, NML said.
"As part of this review, Tata Steel will consider, current or potentially future, participation in NML's recently announced alternative development approach to its taconite properties," it added.
The parties intend to conclude a definitive agreement during the first quarter of 2016 subject to the respective Board approvals of the parties, it said.
Taconite Project consists of the LabMag deposit located in the Province of Newfoundland and Labrador as well as the KeMag deposit located in the Province of Quebec.
NML controls the emerging Millennium Iron Range, located in Newfoundland and Labrador and in Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits.
In the same area, NML and Tata Steel have advanced a Direct Shipping Ore (DSO) Project to the production stage, from which trial shipments have begun. The DSO Project is owned and operated by Tata Steel Minerals Canada Ltd.
Tata Steel exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production.