Singapore-based Tata Steel Global Minerals Holdings Pte Ltd will acquire 19.9% stake in New Millennium Capital Corporation, Canada (NML), for $22 million. Tata Steel will acquire the stake of the common shares of the expanded capital base of NML and also have the option to acquire 80% equity stake in NML's Direct Shipping Ore project (DSO Project) in the Province of Newfoundland and Labrador (NL) and the Province of Quebec.
NML is a publicly owned Canadian mining company engaged in exploration and development of iron ore properties. It controls 9.1 billion tonnes of NI 43-101 taconite mineral resources – 6.9 billion tonnes measured and indicated and 2.2 billion tonnes inferred.
"The projects may prove to be a source for part of the raw materials requirement of the Tata Steel Group. In view of its geographical proximity, Canada is a favourable location to source raw materials for Tata Steel Group's European operations," said B. Muthuraman, Managing Director, Tata Steel Ltd.
Only two weeks back Tata Steel had picked up 7.3% stake in Australia's Riversdale Mining for $129 million, which took its total holding in the company to 43%. It had acquired 35% stake last year for $100 million. Riversdale Mining has coking coal projects in Mozambique.
Tata Group is also reportedly planning to sell stake in Tata Steel Global Holding Pte Ltd, the subsidiary that owns the international steel and mining assets of Tata Steel Ltd, to raise $1 billion. The funds raised are to be used to acquire coal or iron ore mines.