Tata Steel likely to work with Vale in Brazil

After beating Brazilian mining giant CSN in a battle to take over Corus, Tata Steel may enter its home turf in collaboration with another miner.

"Brazilian mining company Vale confirmed to Steel Business Briefing (SBB) that it is studying steel projects to be developed in Brazil with India's Tata Steel and Japan's JFE," according to SBB.

When contacted, a Tata Steel spokesman did not comment on the matter.

In a report to the Brazil's competition regulator Cade, Vale explained that the proposed unit would follow its trend to invest in new steel-making projects to secure future iron ore demand.

The report was filed in order to get approval for its announced $5.5 billion joint venture with China's Baosteel in Espirito Santo, southeastern state of Brazil, it said. Cade approved the Vale-Baosteel venture.

"In the report, just released by Cade, Vale cites participation in projects with CST, Usiminas, Thyssen Krupp's CSA, and Tata and JFE (future projects)," SBB pointed out.

During a visit to Maranhao province of Brazil last year, Tata Sons chairman Ratan Tata met Governor Jackson Lago. The two talked about the possibility of investing in a greenfield project in Maranhao, and Tata was said to have expressed interest in the subject.