Tata Steel to source chrome ore from Iran

Tata Steel is in advance stage of negotiations to procure chrome ore from Iran for its upcoming ferrochrome plant in South Africa, Dinesh Shastri, executive in charge of ferro alloys and minerals division of the company said today.

"The talks are now beyond the primary stage to source chrome ore from Iran," Shastri said on the sidelines of a seminar here on the steel industry.

Shastri refused to give further details about the deal. Chrome ore from Iran would be used to feed Tata Steel's upcoming 135,000-tn high-carbon ferrochrome plant in South Africa.

Tata Steel's initiative to source chrome ore is the company's second joint venture in Iran. In 2005, it had signed a joint venture agreement with Iran Mines and Mineral Industries Development and Renovation Organisation for setting up a 1.5-mln-tn steel slab making facility, a 1.5-mln-tn steel billet making unit, a 3-mtpa export-oriented steel plant, and for exploration and mining of iron ore.

The South African ferrochrome plant, Shastri said, would start production on Mar 31.

"Our plant at Richards Bay would begin production from March 31," he said.

Tata Steel had earlier announced that the plant would be operational by October last year.

At 3:16PM, shares of Tata Steel were at 782.30 rupees on National Stock Exchange, down 4.5% from Tuesday's close.