Tata Steel announces equity pact for its Canadian iron ore mines
Mumbai, Oct 28 (IANS) Tata Steel Minerals Canada, a joint venture between Tata Steel Ltd and New Millennium Iron Corp signed definitive agreements with Resources Quebec (RQ) and Investment Quebec (IQ) for concluding investments of Canadian dollar $175 million, the steel producer said on Friday.
“Tata Steel Minerals Canada together with its parent companies signed definitive agreements for concluding investments of C$ 125 million as equity and C$ 50 million as debt with Government of Quebec’s investment entities, RQ and IQ respectively, totalling C$ 175 million,” said Tata Steel in a filing to BSE on Friday.
The steel maker has invested in Eastern Canada to set up mining operations across several deposits straddled across the Quebec-Newfoundland and Labrador-peninsula and multiple processing facilities including a beneficiation plant.
“The investment will result in an 18 per cent equity stake for RQ in Tata Steel Minerals Canada in line with the carrying value of the investment in Canadian iron ore assets for Tata Steel. Consequently, the shareholdings of Tata Steel and New Millennium Iron will be adjusted to 77.68 per cent and 4.32 per cent, respectively,” the statement said.
“This investment signals the Government of Quebec’s co-operation in supporting sustainable development in line with the objectives of its Plan Nord Initiative,” said Tata Steel Group Executive Director (Finance and Corporate) Koushik Chatterjee.