Tata Steel eyes iron ore mine in Western Australia

14 July 2008

Mumbai: Tata Steel, which is looking for fresh iron ore assets to feed its UK acquisition Corus Steel, is scouting for an iron ore mine in Western Australia, sources from the government of Western Australia said in Mumbai.

Tata Steel emerged the world's sixth largest steel producer with 28.1 million of annual production capacity after the acquisition of  Anglo-Dutch steel maker Corus.

"Tata Steel has expressed interest to invest in Western Australia's iron ore sector," Eric Ripper, deputy premier of Western Australia, said in Mumbai.

Tata Steel, which is also looking for iron ore mines in South Africa, shrugged off rumours, saying it was but logical for a company to look for iron ore mines in Western Australia since this region has huge reserves.

Western Australia supplies iron ore and other minerals worldwide, shipping A$53.4 billion of raw materials in 2006-07.  Petroleum contributed to A$ 16.4 billion while iron ore exports contributed A$15.8 billion to the kitty.

Reports, meanwhile, said Tata Steel is planning to set up a company overseas for consolidating its raw material assets and raise funds in the next six to 12 months for acquisitions.