Tata Steel has started the feasibility study on two Canadian iron ore mines, with estimated 5.6 billion tonne reserves, as it aims to buy stakes to feed its European operations. It has inked pact with Canadian firm New Millennium Capital Corporation (NML) for conducting the study, a very preliminary step to assess the potential of the mines. The result of the feasibility study with regards to LabMag and Kemag projects will come by the end of this year or early 2013.
Both the companies are likely to enter into a binding joint venture agreement upon the successful completion of the feasibility study and Tata Steel electing to develop one or both of the deposits. As per the agreement, Tata Steel and NML will hold 80% and 20% stake, respectively, in the proposed joint venture.
