Tata Steel moves to secure raw material supplies to Corus
06 August 2009
Tata Steel, the world's sixth largest steelmaker, plans to divert 50 per cent of its global iron ore and coking coal resources to secure raw material supplies to its European subsidiary, Corus, by 2015.
While Corus would get most of its raw material from Tata Steel's mines in Mozambique, Canada and South Africa, the group is also scouting for more coal and iron ore assets abroad, Tata Steel managing director B Muthuraman said.
The move is part of Tata Steel's `Weathering the Storm' and `Fit for Future' programmes, which also include plans to save one billion pounds through cost-cutting measures at the Anglo-Dutch steelmaker in 2009-10.
"The fundamental thing is our strategy to get raw material licence to ensure that over the next five-six years, Corus or Tata Steel Europe as it is now called, gets 50 per cent of the raw material," Muthuraman said.
The company expects its mines in Mozambique and Canada to be operational by 2011 while the South African mine will begin production by the end of 2010.
"So that is the journey which we have started but this journey will take some years. These are the things which I expect to start flowing in from 2011 onwards and slowly it will pick up and gradually it will grow," he added.