Tata Steel to join mining project in AustraliaMay 7th, 2008 - 9:10 pm ICT by admin
Mumbai, May 7 (IANS) Tata Steel, along with Brazilian mining giant Vale and other partners, will undertake a major expansion of the Carborough Downs Coal Mine in Australia. The project will help Tata Steel explore larger areas of coal deposits that will enable the company to meet part of its raw material requirements for global business, the company announced here Wednesday.
The total capital investment in the venture is estimated at 401 million Australian dollars ($379.5 million). The commissioning of the new mining equipment (longwall) is expected by mid-2009.
The mine, located in Moranbah in Central Queensland, is operated by Carborough Downs Coal Management Pty Ltd. Vale owns 80 percent of the stake while its partners Tata Steel, Nippon Steel Corp and POSCO own five percent each. The other partners, JFE Steel and JFE Shoji, own 2.5 percent each.
The Carborough Downs mine started production of coking coal in August 2006. The new investments will help it achieve a net turnover of 3.7 million tonnes coking coal and PCI coal by end-2009, the statement said.
The 101-year old Tata Steel is ranked the world’s sixth largest steel producer.
With the recent acquisition of Corus, the combined venture has notched a total crude steel production of around 28.1 million tonnes. With operations in 24 countries across four continents, Tata Steel is the second most globally diversified steel group.
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