Steel behemoth Tata Steel and Canadian mining company New Millennium propose to start production from one of their joint venture iron ore projects in the North American nation from the second quarter of 2011.
"NML/Tata (Steel) plan is to start mine production (from DSO project), subject to a positive feasibility study and financing, in Q-2, 2011," the Canadian company said.
The world's sixth largest steelmaker, which had acquired 19.9 per cent stake in New Millennium (NML) Capital Corp for USD 22.6 million last year, would ship iron ore from 'Direct Shipping Ore' project to its European arm Corus.
While entering into a binding agreement with NML, Tata Steel had said it would acquire, at its option, 80 per cent equity interest in the DSO project located in the province of Newfoundland and Labrador, and the province of Quebec.
The feasibility study for the project is likely to be completed by July-September quarter this year, NML said on its website. To give impetus to the project, Tata Steel has proposed forming a special steering committee comprising three representatives each from the two companies, it added.
The steel major has already moved its Canada project CEO Suren Rao to the New Millennium’s head office in Montreal to oversee the project.