As part of its efforts to ensure raw material security, Tata Steel along with Brazilian mining giant Vale and other joint venture partners, is undertaking a massive expansion of the Carborough Downs coal mine near Moranbah in Central Queensland, Australia, for an investment of $379.41 million (about Rs 1,555 crore).
Carborough Downs is an underground mine operated by Carborough Downs Coal Management. Around 80 per cent of the mine is owned by Vale and its joint venture partners, including Tata Steel, Nippon Steel Corporation, Posco, JFE Steel and JFE Shoji.
Tata Steel, Nippon Steel and Posco own 5 per cent each in the Carborough Downs coal mine, while JFE Steel and JFE Shoji individually hold 2.5 per cent.
"The estimated capital investment is A$401 million ($379.41 million). The construction is scheduled to commence in May 2008 and the commissioning of large-scale and new mining equipment (Longwall) is expected by mid 2009," a Tata Steel release said. The Carborough Downs coal mine began production in August 2006.
The investment would lead to an annual production of 4.9 million tonnes Run of Mine (RoM) coal, yielding 3.7 million tonnes of coking and PCI coal from the third quarter of 2009.
"The decision on expanding production at the Carborough Down coal mine in Australia gives Tata Steel an opportunity to explore larger areas for coal deposits. This will be a potential source of partially meeting the company's raw material requirements and enhancing the long-term competitiveness of its global operations," the company release added.