TATA Steel invests in iron ore project

TATA Steel has exercised its option to acquire an 80% interest in the Direct Shipping Ore Project of New Millennium Capital Corp. of Canada. As part of the JV agreement, TATA Steel will reimburse New Millennium Capital Corp. 80% of New Millennium Capital Corp.’s cost to date on the DSO Project; arrange funding up to CAD 300 million of capital costs for the project to earn its 80% share of the JV and commit to take 100% of the DSO project’s iron ore products of specified quality, at world market prices, for the life of the mining operation. Commencing in 2012, it is expected that the JV will produce 4 million dry tns/yr of iron ore products from the emerging Millennium Iron Range in Newfoundland, Labrador and Quebec. In the same area, the corporation is also advancing to near term production its DSO Project. The corporation’s DSO project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8%Fe, 8.1 million tonnes of Measured and Indicated Mineral Resources at an average grade of 58.8% Fe, 7.2 million tonnes of Inferred Resources at an average grade of 56.8% Fe and about 40.0 million tonnes to 45.0 million tonnes of historical resources that are not currently in compliance with NI 43-101.

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