India-based Tata Steel has formed a joint venture with Canada’s New Millennium Capital Corporation to carry out iron ore mining operations in Canada.
The joint venture company, Tata Steel Minerals Canada, is expected to produce four million tonnes of iron ore products a year from 2012, which would be shipped to Tata Steel’s European arm.
Tata Steel subsidiary Tata Steel Global Minerals Holdings will have an 80% stake in the joint venture company, with the remaining 20% held by New Millennium.
The new company will also acquire all of the direct shipping ore (DSO) project’s mining claims and assets among others.
Earlier, Tata Steel had entered into an agreement with New Millennium, with an option to acquire 80% equity interest in the DSO project located in the provinces of Newfoundland, Labrador and Quebec.