Tata Steel has entered into a letter of intent (LoI) to increase its stake in Canadian mining company New Millennium Capital Corp to 27.4 per cent, a move aimed at buffering its European operations from the volatility in raw material prices to some extent.
According to an intimation from New Millennium Capital Corp, LoI was being pursued by Tata Steel Global Mineral Holdings Pte, a subsidiary of Tata Steel. At present, Tata Steel owns 19.65 per cent in the Canadian company. Production from New Millennium’s Direct Shipping Ore (DSO) project is expected in 2011. Tata Steel would invest $300 million for 80 per cent of the project. Around four million tonnes of sinter fines is expected from the third quarter of 2011.