To feed its Europe’s plants Tata Steel Minerals Canada (TSML), a joint venture of the Indian steel maker, has secured key permission last week for land use related to its proposed iron ore project in north-eastern Canada.
Toronto-listed New Millennium Iron Corp, Tata Steel’s 20 per cent strategic partner, said that TSML signed agreement with the appropriate aboriginal council of the south Labrador for the direct shipping ore (DSO) project.
It paves the way to use the land for mining and building infrastructure. The council has powers to authorise use of land in the vast Millennium Iron Range area containing undeveloped magnetic iron deposits. The proposed DSO project, primarily to feed Tata Steel Europe’s plants, is located there.
The tie-up will also benefit the project from the availability of qualified local people for operating and management roles. The DSO project, owned and operated by TSML, is expected to begin shipping of iron ore to Tata Steel European units this financial year. Tata Steel has output offtake agreement with TSML.