Tata Steel Ltd. on 12 March 2013 announced that Tata Steel Minerals Canada Ltd. (TSMC) acquired stake in Canadian company Labrador Iron Mines Holdings Ltd. (LIM) for 163 crore Rupees.
Main points of the deal:
• According to the deal, Labrador Iron decided to transfer 51 percent stake in Howse deposit to TMSC. It is estimated that Howse deposit will have28 million tonnes of iron ore resources.
• In exchange, Tata will be transferring Timmins 4 deposit having 1.7 million tons of resources to Labrador for 16.3 crore Rupees. The payment would be recovered from sales.
• Later, Tata can increase the ownership of Howse deposit to 70 percent for 136 crore Rupees. As a part of the deal, Tata is free to further explore Howse deposit.
• Tata Steel Minerals Canada Ltd. (TSMC) and Labrador Iron Mines Holdings Ltd. (LIM) will co-operate with each other for development of rail line which will pass through Labrador Iron's rail yard facilities and connect TSMC's processing plant with main line.
It is important to note that Tata Steel had laid its footprints in Canada already after buying 27.7 percent in the New Millennium Iron Corporation.
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