Tata Steel to produce 1 MT iron ore from Canada project this year
New Delhi: Tata Steel is looking to produce 1 million tonne iron ore from its project in Canada during the current fiscal, a move that will boost raw material supplies to its European operations.
It is also targeting to ramp up the production from Direct Shipping Ore (DSO) Project to over 3 million tonne (MT) next fiscal, it said in a presentation posted on its website.
Tata Steel, through Tata Steel Minerals Canada (TSMC), holds 80 percent stake in the DSO project. The production is expected to begin from the October-December quarter.
"(There is a) plan for 1 MT of iron ore in FY 2014, to be ramped up to over 3 MT in FY 2015. Key permits, approvals and environmental clearances (have been) obtained and construction is underway," the company said.
In July, the DSO project had despatched its first train with products containing TSMC's dry crushing and screening plant with 164 cars of 100 tonnes capacity each to the Iron Ore Company of Canada terminal in Sept-Iles.
Tata Steel has also made port arrangements for the current year dispatches.
The DSO Project, run by TSMC, contains 64.1 MT of proven and probable reserves having an average grade of 58.8 percent iron. It also has about 60 MT indicated, inferred and historical resources of various grades of iron.
Tata Steel has the commitment to invest about 300 million Canadian dollars on the DSO project.
Some time back, New Millennium Iron Corporation - the 20 percent partner in DSO Project - had said that construction of the processing complex and ancillary facilities are expected to be completed during the last quarter of 2013 and then, the first production will happen.
Iron ore from the project will be shipped to Tata Steel's European operations as pellets and sinter fines. The company had already made a commitment to take 100 percent of the DSO project's iron ore products for the life of the mining operations.
Besides the DSO project, Tata Steel has 26.3 percent stake in Canadian firm New Millennium Iron Corporation and 51 percent stake in Howse iron ore deposit of Labrador Iron Mines.
TSMC is also involved in the development of New Millennium's LabMag-KeMag iron ore deposits, which together have proven and probable reserves of 5.6 billion tonnes of low grade iron ore.
The DSO Project and LabMag-KeMag deposits are major crucial links for the raw material security of Tata Steel's European operations, which does not have any captive mine of its own.