Indian steel giant Tata Steel (Tata) has entered into an agreement worth $150 million to establish a JV with Oman-based Al Bahja Group, which operates in the fields of agriculture, fast moving consumer goods (FMCG), copper, real estate, hotels, pharmaceuticals and alternative energy solutions, for the development of the Uyun limestone deposits at Salalah. The deposits in question are estimated to contain 10 million mt of limestone.
The project will be implemented by Al Rimal Mining, in which Tata will hold 70 percent through its subsidiary TS Global Minerals Holdings. Tata said that, although limestone is a crucial raw material for steelmaking, the total value of the deal is not as great as in iron ore or coal mine acquisitions.
The initial phase of the project will include the exploratory works and feasibility studies and, once the deposits go into operation, the acquired limestone will be shipped to India to be used for Indian operations, as well as to the UK where Tata's subsidiary Corus is based.
Tata does not possess any limestone deposits; however it had entered a JV with Thailand-based Unistretch for sourcing limestone for their steel plants four years ago. The deal is in line with Tata's strategy to secure raw materials for its steelmaking, namely coking coal and iron ore.