Tata Steel in ore project JV in Canada; gets land for Vietnam steel plant
09 November 2009
Tata Steel has entered into a joint venture agreement with Canada's New Millennium Capital and LabMag even as its joint venture project in Vietnam has been allocated alternative land.
The Canadian joint venture will develop a direct shipment ore project in that country and Tata Steel will take a majority 80-per cent stake in it, including the project cost of C$300 million, the company said in a statement.
Tata Steel said the feasibility study of the project is currently underway and once completed, the company would take an investment decision within 180 days thereafter.
Tata Steel said its joint venture would get alternative land in Vietnam for building a 4.5 million tonne a year steel plant, involving an investment of $5 billion.
The board of Vung Anh Economic Park has proposed allocation of 725 hectares to Tata Steel and its Vietnamese partners in the central province of Ha Tinh, reports quoting company sources said.
Of the 725 hectares, 700 hectares would be used for construction of a 4.5 million tonne capacity steel plant, Vietnamese media quoted Indronil Sengupta, Tata Steel's executive manager of projects in Southeast Asia, as saying.
Tata Steel has a 65 per cent stake in the joint venture while Vietnam's Steel Corporation and Vietnam Cement Industries Corporation hold 30 per cent and 5 per cent, respectively.
The steel venture is also expected to get a 30 per cent stake in the Thach Khe iron ore mines.