Tata Steel joins hand with Quebec government for its Canadian iron ore mines

Tata Steel on Friday signed a definitive agreement with government of Quebec for investing C$175 million in the Canadian iron ore mines.

It said in release,"Tata Steel Minerals Canada together with parent have signed definitive agreement of C$ 125 million as equity and C$ 50 million as debt with Government of Quebec's investment entities namely - Resources Quebec (RQ) and Investment Quebec (IQ) respectively, totaling to C$ 175 million."

Kaoushik Chatterjee, Group Executive Director (Finance & Corporate) of Tata Steel said,"The investment signals Government of Quebec's co-operation in supporting sustainable development in line with the objectives of its Plan Nord Initiative. 

Investment in Eastern Canada is to set up mining operations across several deposits straddled across Quebec-Newfoundland and Labrador - peninsula and multiple processing facilities including a state-of-art beneficiation plant.

Chatterjee added," We are confident that the Quebec government’s investment will facilitate the implementation of Tata Steel Mineral Canada’s future plans of ramping up production, improving cost competitiveness and the development of the mineral deposits in Quebec.”

This investment will result as 18% equity stake for resources Quebec in Tata Steel Minerals Canada which will also be in line with carrying value of the investment in Canadian iron ore assets for Tata Steel.

Similarly with this, the shareholding pattern will be adjusted for Tata Steel and New Millennium Iron to 77.68% and 4.32% respectively.