Tata Steel has entered into a strategic pact worth Canadian dollar 30 million with Labrador Iron Mines Holdings. The agreement includes transfer of 51% stake in one of the deposits owned by the Canadian entity to the Tata group firm.
"Tata Steel through its subsidiary Tata Steel Minerals Canada Ltd (TSMC), entered into a framework arrangement with LIM to establish a strategic relationship ... the two companies have agreed to co-operate with each other in various aspects of their respective iron ore operations in the Labrador Trough," a statement issued by Tata Steel said.
As part of alliance LIM shall transfer 51% interest in the Howse deposit, which is estimated to contain 28 million tonnes (MT) of ore reserves, to TSMC.
TSMC also has an option to further increase its ownership of Howse deposit to 70% for a consideration of additional Canadian dollar 25 million, the company said in the statement.