Indian steel major TATA Steel and Canadian mining company New Millennium Capital Corp. (NML) have proposed to start production from one of their joint strategic iron ore projects, located in the province of Newfoundland and Labrador and the province of Quebec, from the second quarter of 2011.
In a statement on the issue, NML said, "The NML-TATA plan is to start mine production from the direct shipping ore (DSO) project, subject to a positive feasibility study and financing, in the second quarter of 2011."
NML added that TATA is expected to start arranging funds for the project once approvals are obtained, most likely by the last quarter of 2009.
In addition, NML has stated that the feasibility study for the project is likely to be completed by the July-September quarter this year. To give impetus to the project, TATA Steel has proposed forming a special steering committee comprising three representatives each from the two companies.
TATA Steel which acquired a 19.9 percent stake in NML for $22.6 million last year, would ship iron ore from the DSO project to its European company Corus.
When entering into its binding agreement with NML, TATA Steel said it would acquire, at its option, an 80 percent equity interest in the DSO project.