Tata Iron and Steel Company (Tata Steel) has signed an agreement with AMCI Australia Pty to buy 5% interest in the Carborough Downs coal project located in Queensland, Australia.According to a release issued by Tata Steel to the BSE today, the company also signed an offtake agreement for a proportion of the production over life of the project."Carborough Downs is an undeveloped, underground coking coal project with production scheduled to commence in 2006. It is located in Bowen Basin in Central Queensland. The project life is estimated to be 14 years, and approximately 58 million tonne of raw coal is expected to be mined during the period. There is a further potential resource of 100 million tonne of raw coal in unexplored areas and deeper seams. The clean coal envisaged to be produced will be low-ash coking coal, highly suitable for steel making," the release added.The Carborough Downs coal project is majority owned and operated by AMCI Australia Pty, a subsidiary of AMCI Holdings Australia Pty.
