Indian steelmaker Tata Steel Ltd. (Tata) and Ivory Coast's state-run mineral development company Ivory Coast Society of Mines (SODEMI) have entered into an agreement for the development of the Mount Nimba Iron ore deposits in the West African country.
The amount to be invested in the project by Tata is reportedly in the range of $1-2 billion. The project, in which Tata will hold a 75 percent stake, with the balance held by SODEMI, will be implemented in two phases. The initial phase will involve exploration and detailed feasibility assessments followed by construction of the mine and beneficiation facilities.
The iron ore supplied from this project will be delivered to Tata group facilities in Europe, in particular in the UK and Netherlands, thus lowering the company's production costs and helping the company boost its self-sufficiency in raw materials for steelmaking.