Tata Steel, which holds 80 per cent stake in the Direct Shipping Ore (DSO) project, plans to produce over 3 million tonne (mn t) of iron ore from the project by 2014-15. The production is expected to begin from October-December quarter. The firm plans to invest about C$300 million on the DSO project.
Tata Steel holds the stake through Tata Steel Minerals Canada. During the current fiscal, the company aims to produce 1 million tonne ore from its Canadian project. This would boost raw material supply to its European operations.
The company said it secured key permits, approvals and environmental clearances for the project and construction is underway.
In July, the DSO project sent its first train with products containing TSMC’s dry crushing and screening plant with 164 cars of 100-tonne capacity each to Iron Ore Company of Canada terminal in Sept-Iles.
For the current year dispatches, Tata Steel also made port arrangements. The DSO project, run by TSMC, contains 64.1 mn t of proven and probable reserves having an average grade of 58.8 per cent iron.
It has about 60 mn t indicated, inferred and historical resources of various grades of iron.