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Projects and Operations

The Tata Steel Group’s growth and globalisation strategy is driven by its business expansion while maintaining profitability and mitigating risks. The Tata Steel Group over the years has focused on enhancing raw material security and announced major joint ventures in various parts of the globe.

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Australia

 

Bowen Basin Project

Location : Bowen Basin in Central Queensland

 

Project Highlights

  • Tata Steel has a joint venture with Vale in Australia for a Coking Coal Mine.
  • Tata Steel on December 14, 2005 signed agreements to buy a 5% interest in the Carborough Downs Coal Project located in Queensland, Australia.
  • Tata Steel and Vale, along with other joint venture partners (Nippon steel, JFE and Posco) have undertaken a large scale expansion of the Carborough Downs Coal Mine near Moranbah in Central Queensland in Australia.
  • The Carborough Downs coal project is majority owned and operated by a subsidiary of AMCI Holdings Australia Pty Ltd.
  • The project life is currently estimated to be 14 years and approximately 58 million tonnes of raw coal is expected to be mined during this period.
  • There is a further potential resource of 100 million tonnes of raw coal in the unexplored areas and deeper seams.
  • The clean coal envisaged to be produced would be low-ash coking coal and PCI coal, highly suitable for steel making.
  • Tata Steel also signed an offtake agreement for a proportion of the production over life of the project.
  • The first raw coal production started in August 2006 and the mine is currently producing around 1 MTPA.

 

Capacity: Mining capacity of 58 million tonnes of raw coal for 14 years.

 

Project Updates

The second phase of expansion has been undertaken, at the end of which the Company is expected to produce around 2.5 million tonnes of Coking and PCI coal during the fiscal year 2010-11. The Longwall expansion programme continued during the year.

 

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Canada

 

Taconite Project

Location : Northern Quebec, Labrador and Newfoundland provinces

 

Project Highlights:

  • Tata Steel, through its subsidiary Tata Steel Global Minerals Holdings Pte Ltd., signed a binding Heads of Agreement with New Millennium Capital Corporation, Canada to develop the Labmag and Kemag iron ore deposits, collectively referred to as the Taconite project.
  • Tata Steel will participate in a feasibility study of the Taconite Project.

 

About New Millennium Capital Corp. (NML): The Corporation controls the emerging Millennium Iron Range, known to hold the world’s largest magnetic iron ore deposits. Tata Steel is NML’s largest shareholder and strategic partner.

 

 

Direct Shipping Ore Project

Location : Northern Quebec, Labrador and Newfoundland provinces

 

Project Highlights:

  • A Joint Venture Company, Tata Steel Minerals Canada Ltd. has been formed between Tata Steel Global Minerals Holdings Pte Ltd. and New Millennium Capital Corporation, Canada.
  • Tata Steel will own 80% of the JVC and NML 20%.
  • The aim was to develop iron ore projects in the region.
  • The agreement also provides exclusivity to Tata Steel in the Labmag taconite iron ore property.
  • Tata Steel will have 100% offtake rights to the produce of the mine at the time of production commencement.
  • The iron ore from this project will serve Tata Steel’s European facilities.
  • In June 2010, Tata Steel subscribed to a private placement of Canadian $20 million by NML pursuant to which Tata Steel Global Minerals Holding Pte. Ltd. now holds a 27.4% stake in NML.

 

Capacity: The DSO resource is estimated to be approximately 100 million tonnes. The LabMag deposit consists of 3.5 billion tonnes of proven and potential mineral reserves. These reserves are contained in the 4.6 billion tonnes of measured and indicated resources and 1.2 billion tonnes of inferred resources.

 

Project Update: Tata Steel, along with NML is trying to work out an economically viable solution to advance the project. NML has completed a feasibility study for the DSO Project which is being reviewed by Tata Steel. The Feasibility Study estimates proven and probable mineral reserves of 64.1 million tonnes for the DSO Project. Subject to receiving all regulatory approvals, production is expected to commence in 2011.

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India

 

Seraikela Greenfield Project, Jharkhand

 

Project Highlights:

  • Setting up a 12 million tonnes per annum Greenfield integrated steel plant in the state.
  • The Greenfield project is to be set up in two phases. The first phase of 6 mtpa is likely to be set up within 36 months to 54 months from the date of obtaining all statutory clearances.

 

Capacity: 12 mtpa integrated steel plant.

 

Project Update: Tata Steel is awaiting the R&R Policy from the State Government for its Greenfield project.

 

 

Jamshedpur Plant, Jharkhand

Brownfield Project

 

Project Highlights

MoUs with the Government of Jharkhand was signed in 2005 for –

  • Expansion of Tata Steel's existing plant at Jamshedpur from 5 mtpa to 10 mtpa.
  • Co-operation in the area of Human Resource Development through Industrial Training Institutes.
  • The project includes the development of iron ore mines and other raw materials sources including coal and logistic linkages for this plant.

 

Project Update: The first phase which entails reaching a crude steel capacity of 6.8 mtpa has essentially been completed. The capacity of the Jamshedpur plant is expected to become 10 mtpa by December 2011.

 

Commissioning of Coated Steel Manufacturing Plant

 

Project Highlights: The manufacturing facility for coated steel of Tata Bluescope Steel Ltd. is under construction at Jamshedpur and is expected to be completed by March 2010. Tata Bluescope Steel Ltd. is a 50:50 joint venture between Tata Steel Ltd. and Bluescope Steel Australia.

 

JV between Tata Steel & Nippon Steel Corporation

 

Project Highlights: Tata Steel and Nippon Steel Corporation (NSC), Japan will set up a Continuous Annealing and Processing Line at Jamshedpur, India with 0.6 mtpa capacity. The line will produce automotive cold rolled flat products and address the local needs of Indian automotive customers for high-grade cold rolled steel sheets. Tata Steel will hold 51% and NSC will hold 49% stake in the joint venture company. The proposed joint venture aims to capture the growing demand for high-grade automotive cold-rolled flat products in India. NSC will transfer its technology for producing high-grade cold-rolled steel sheets for automotive application including skin panel and high tensile steel.

 

Project Update: A MoU was signed for the purpose between Tata Steel and Nippon Steel Corporation in April 2010.

 

Other Projects

 

Simultaneously the Company also has a few major ongoing capital projects, which includes the capacity augmentation of Hot Strip Mill, Coke Dry Quenching at Coke Ovens Batteries 5, 6 & 7 and setting up a new mill for producing Full Hard Cold Rolled (FHCR) coils at Jamshedpur.

 

 

Jagdalpur (Bastar) Project, Chhattisgarh

Project Updates: 

 

  • After acquisition fulfilling necessary processes, the land has been transferred in favour of the Department of Industries, which will subsequently lease it out to Tata Steel Limited.
  • The Chhattisgarh Government has accorded approval for drawing water from river Sabri and the Ministry of Railway, Government of India has granted an in principle approval for the railway corridor.
  • Prospecting License for iron ore has been granted in Bailadila-I deposits after approvals have been obtained from the Ministry of Environment and Forest and Ministry of Mines, Government of India.
  • Public hearing for the Environment clearance has been successfully conducted. 
  • Conforming to the Company’s CSR initiatives, several activities in the field of health, youth and women empowerment, sports and skill development are being carried out for local residents and displaced families.

 

 

Kalinganagar Greenfield Project, Odisha

Project Highlights: Preliminary work on the 6 million tonne per annum capacity Greenfield steel plant at Kalinganagar, Odisha(to be constructed in two phases) is in progress, focusing on land acquisition, rehabilitation and resettlement work.

 

Project Update:

 

  • As of March 2010, a total of 806 families have been shifted from the plant site.
  • The rehabilitation colonies for their resettlement have been provided with good infrastructural facilities that include clean drinking water, street lighting, and a community centre set up by the Company.
  • A hospital with all amenities is also being provided by the Company.
  • During the financial year 2009-10, construction of a warehousing shed and a building for a power receiving sub-station had started at one corner of the plant area. § As per the MOU signed with the State Government of Odisha, the Company has fulfilled its obligation of placing the order for equipment and services.

 

 

Port Project at Dhamra, Odisha

Project Highlight: The Dhamra Port Company Limited, a 50:50 joint venture of Tata Steel Limited and Larsen & Toubro, is developing a deep-draught port under a concession agreement awarded by the Government of Odisha on Build, Own, Operate, Share and Transfer (BOOST) basis. Situated between Haldia and Paradip, Dhamra Port will be one of the deepest ports in India with a draft of 18 meters, capable of accommodating super capesize vessels up to 1,80,000 DWT. Once commissioned, Dhamra Port will be of strategic importance to Tata Steel in terms of its integrated logistic cost of raw materials and will also consolidate Tata Steel’s supply chain network, contributing to its expansion aspirations.

 

Project update: Phase-I of the project is almost complete and the port is expected to commence commercial operations by August 2010. In Phase-I, two fully mechanised berths, one for handling imported cargo and the other for export cargo with back-up facilities are being built, along with a rail corridor for hinterland connectivity. The capacity is estimated to be 27 MTPA in Phase-I.

 

 

Haldia Plant, West Bengal

Tata Steel merged Hooghly Met Coke and Power Company Ltd. (HMPCL) with itself from 1st April 2009. The Company was set up to produce low ash metallurgical coke primarily to meet Tata Steel’s requirement at its Jamshedpur plant and also to supply hot gases to Tata Power for electricity generation by adopting heat recovery route.  The plant is located in Haldia, West Bengal. Close proximity to the Haldia Dock Complex offers several advantages, including the import of coking coal in a more cost effective manner. The company has a production capacity of 1.6 million tonnes of coke.

 

 

Tuticorin Mines, Tamil Nadu

Project Highlights

  • MoU with the Government of Tamil Nadu signed on June 27, 2002.
  • Titania project involves mining, mineral separation and value addition i.e. pigments production in phases subject to techno- economic viability.
  • Prospecting license over 80 sq.km area granted by the Government of Tamil Nadu in the districts of Tirunelveli and Tuticorin with due approval from Government of India.
  • The feasibility study conducted with the help of Consortium Partners comprising Outokumpu Finland's physical separation division based in USA, Outokumpu-Lurgi, Germany, Pincock Allen and Holt, USA, a resource and mining consulting company and L&T.
  • Environmental Impact Assessment of the project carried out and Environmental Management Plan drawn with the assistance of MIN-MEC Consultancy.

 

Capacity: 60,000 tonnes per annum of titanium di-oxide.

 

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Ivory Coast

 

Nimba Iron ore Project

Location : Nimba Iron ore deposits in Ivory Coast

 

Project Highlights:

  • Tata Steel Limited and SODEMI (State Owned Company for Mineral Development), on December 11, 2007 entered into Joint Venture agreement for the development of Mount Nimba Iron ore deposits in Ivory Coast (West Africa).
  • The project will be implemented by a joint venture company – Tata Steel Cote d’ivoire, wherein Tata Steel will have a major shareholding (75%).
  • The Mt. Nimba deposit spread over 3 countries – Liberia, Guinea and Ivory Coast is one of the biggest iron ore deposits in West Africa.
  • The initial phase will involve exploration and detailed feasibility assessments followed by construction of the mine and beneficiation facilities. The iron ore from this project will be supplied to Tata Steel Group facilities especially those located in the United Kingdom and The Netherlands.

 

Capacity: To be assessed.

 

Project Update: In view of the environmental issues encountered in the case of Mt. Nimba, Tata Steel approached the Government of Ivory Coast to grant a prospecting license for Mt. Gao for an early start of the project. The Government of Ivory Coast has granted an exploration license to Sodemi on 30th July 2009 and an Addendum to the Joint Venture Agreement was signed on 29th September 2009 to include Mt. Gao in the Joint Venture Agreement. The exploration license for Mt. Gao has been transferred to the JV Company. A team has been deployed on the ground to carry out the feasibility studies.

 

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Mozambique

 

Benga Coal Project

Location : Key coal exploration tenements (the Benga and Tete licences) held by Riversdale in Mozambique

 

Project Highlights

  • Tata Steel and Riversdale Mining Ltd. Australia signed a joint venture agreement on November 30, 2007.
  • Under the terms of agreement, Tata Steel will pay AUD100 million (approximately 88.2 million USD) to acquire 35% of Riversdale's Benga and Tete licences.
  • The JV comprises two licences (the Benga and Tete licenses) and covers an area of 24,960 hectares (approximately 96.7 square miles).
  • The coking coal derived from this project will be supplied to the Tata Steel Group's facilities in Europe, Asia and elsewhere.
  • The JV conducted a formal ‘Ground Breaking Ceremony’ in the presence of the President of the Republic of Mozambique, His Excellency Armando Emilio Guebuza on 14th April 2010.
  • The official ceremony follows a series of milestones already achieved by the Company such as the signing of the Mining Contract, approval of Environmental Licenses for the Benga Coal Project and the Benga Power Project and the approval of Stage 1 of the Benga Coal Project following the completion of the Feasibility Study for production of 10.6 million ROM tonnes in two phases.
  • Other key contracts and agreements include the CHP Plant Supply Contract, a Resettlement Action Plan and the Project Labour Agreement (PLA) which was signed with SINTICIM (the Mozambican National Construction and Mineworkers Union).

 

Capacity: Potential to extract 720 million tonnes by open-cut methods from a major coal resource in the Benga Licence.

 

Project Update: Stage I, entails initial production of 5.3 million ROM tonnes per year to produce approximately 1.7 MTPA of high quality hard coking coal and 0.3 MTPA of export thermal coal by Q2 2011.

 

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The Netherlands

 

IJmuiden Steel Works

Operations: The IJmuiden Steel Works is Tata Steel's largest and most cost-efficient steel making facility in Europe, with a production capacity of 7.2 MTPA

 

Projects: A number of capital expenditure schemes are in progress at IJmuiden. Among them is a €20m pilot plant that is being jointly funded with ULCOS, the European Commission and the Dutch government. The 60,000 TPA pilot plant is intended to prove the commercial and technical viability of a new iron making process called HIsarna. If successful, the project will considerably reduce the carbon dioxide emissions of the existing integrated steelmaking process. HIsarna would also be more energy efficient than existing technology and use cheaper and more abundant raw materials.

 

For further information, please visit www.tatasteeleurope.com

 

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Singapore

 

Tata NYK Shipping Pte Ltd.

Tata NYK Shipping Pte Limited is a Singapore based 50:50 joint venture between Tata Steel and Nippon Yusen Kabushiki Kaisha (NYK line), a Japanese shipping major.

 

Project Highlights

  • The JV was set up to cater to ship bulk cargo such as coal, iron ore and steel.
  • The shipping firm would handle the Tata Steel Group’s requirements for moving raw materials and steel.
  • The Company would ensure a strategic control over logistics in the future.
  • Tata NYK has entered into a long term charter for 8 Supramax / Panamax vessels.
  • Orders have been placed for building two new Supramax vessels.
  • The Company handled a total of 4.48 million tonnes of cargo in FY 09.

 

Project Update:

 

As part of its long-term strategy, the Company plans to enter into a long term charter for capsize vessels in 2009.

 

 

NatSteel Holdings

 

NatSteel, a 100% subsidiary of the Tata Steel Group, is headquartered in Singapore and has presence in Vietnam, Thailand, Australia, China, Malaysia, Philippines and Singapore. The Singapore operations comprise steelmaking and rolling operations of capacity 7,50,000 tonnes per annum and has a well-established downstream business. The downstream business comprising direct sales to contractors uses 45 knowledge-centric services and consists of a cut and bend facility and products like mesh, cages and couplers which benefits the customers in terms of higher yields, higher productivity, lesser space requirement and just in time steel in desired sizes. The downstream facility in Singapore, produces over 4,00,000 tonnes per annum of cut and bend bars, mesh, pre-cages, bore pile cages etc., and is the largest single location facility in the world.

 

Of the two units operating in China, one is a rolling mill at Xiamen producing about 5,00,000 tonnes of bars and rods and the other is a wire drawing plant at Wuxi, with a capacity of 1,00,000 tonnes per year. In the Xiamen city, the market share is about 25%.

 

Vietnam Operations

 

NatSteel in Vietnam is a 55% equity partner in a Joint Venture with VN Steel and a capacity of 1,30,000 tonnes per year.

 

Australia Operations

 

In Australia, the downstream business has a capacity of 2,50,000 tonnes per year.

 

Philippines Operations

 

At Philippines, NatSteel is a 40% partner in the Joint Venture with a capacity of 3,50,000 tonnes per year.

 

The wire drawing plant in Thailand (SIW) produces about 1,20,000 tonnes of wires and with the expansion to be commissioned by this year-end, the capacity will increase to about 1,50,000 tonnes per year. It would be pertinent to note that both the wire operations in Wuxi and in Thailand, export to worldwide markets.

 

Continuous Improvement

 

During the past few years, NatSteel’s continuous improvement efforts have been focused on reducing cost, improving productivity and enhancing quality. The upstream production has gone up from 5,55,000 tonnes in year 2006 to 7,50,000 tonnes in year 2009.

 

During the financial year 2008-09 Singapore sold about 956,000 tonnes of steel with an achieved market share of about 58%. The downstream facilities in Singapore sold over 4,75,000 tonnes in FY 09, 20% more compared to the previous year. Among other operations of the NatSteel Holdings, the Xiamen operations in China, a 100% subsidiary of NatSteel, sold 426,000 tonnes of rolled products during FY 09 and the Australian operations of NatSteel sold around 188,000 tonnes of steel in straight length rebars, mesh, cut & bend and other accessories.

 

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South Africa

 

Tata Steel (KZN)

Tata Steel (KZN) is a South Africa based subsidiary of Tata Steel, in the business of producing Ferro Chrome and Charge Chrome. It has moved on from the project phase and become operational since 3rd April 2008 with the switching on of Furnace I.

 

Location: Richards Bay (in uMhlathuze Municipality)

 

Highlights of Operation

  • The ground-breaking ceremony of Ferro Chrome Project was held at Richards Bay on August 21, 2006.
  • The business model of the plant includes taking high quality Chrome Ore from India and elsewhere, converting it into Ferro Chrome in Richards Bay, and exporting the finished product to various customer destinations.
  • The briquette technology being used by the company is environment friendly and relatively new to South Africa. TSKZN is one of the most environment compliant plants globally.
  • TSKZN will produce some 150 000 tonnes per annum of ferrochrome during the first few years of operation. All of the ferrochrome produced by TSKZN will be exported through the port of Richards Bay. More than 90% of TSKZN ferrochrome (with chromium content of 52% ‐ 65% depending on ore source) will be utilised in the production of stainless steel.
  • On 17 September 2009, TSKZN achieved two milestones - the flag off of 100,000mt of FeCr sales and the inauguration of the Metal Recovery Plant.

 

 

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Thailand

 

Tata Steel Thailand

Tata Steel Group’s equity in Tata Steel Thailand is 67.1%. Headquartered in Bangkok, its three main subsidiaries are SISCO, NTS and SCSC. In the year 2008, Tata Steel Thailand registered sales of 1.4 million tonnes. The Company’s predominant market is in Thailand and its market share in 2008 was 31% in the long products business. The Company also has been improving continuously in the past few years with its various initiatives focused on reducing cost, improving productivity and quality. Production during FY 09 was at 1.07 million tonnes while sales at 1.1 million tonnes.

 

Tata Steel Thailand is committed to moving forward in the journey for excellence and social accountability. The Company continuously improves its business processes and systems in accordance with its commitment to environmental responsibilities.

 

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United Kingdom

 

 

Operations: Carbon steel is produced by the basic oxygen steel making method at two integrated steelworks in the UK at Port Talbot and Scunthorpe, and special and alloy steels through the electric arc furnace method in Rotherham. In addition, there are a number of downstream rolling, coating and processing facilities.

 

Performance: Liquid steel production in 2010-11 at 14.8 million tonnes was marginally higher than that of 2009-10. Turnover for the period was Rs.75,991 crores (US$ 17.04 billion).

 

Projects: A number of capital expenditure schemes are in progress in the UK. Among them is the £185m rebuild of the No 4 blast furnace BOS gas recovery plant at Port Talbot, and the £53m BOS gas cooling system, also at port Talbot, which will significantly contribute to the goal of energy self-sufficiency in energy.

 

For further information, please visit www.tatasteeleurope.com

 

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Vietnam

 

Ha Tinh Project

Location : Ha Tinh province

 

Project Highlights

  • A proposed steel complex with an estimated capacity of 4.5 million tonnes per year.
  • Tata Steel signed an MoU with Vietnam Steel Corporation (VSC) on May 29, 2008 to develop a steel complex in Ha Tinh. Another MOU was signed to set up a cold rolling mill in Ha Tinh province.
  • Tata Steel is partnering with VSC in establishing a steel complex in Ha Tinh province, which will be phased over 10 years. On the successful completion of the study and financial closure, Tata Steel will have a stake of minimum 65% and VSC will have a stake of 35% in the Steel complex.
  • Tata Steel will also have a stake of 30% in Thach Khe Iron Ore Joint Stock Company, which would undertake mining in the Thach Khe iron ore mine.

 

Capacity: A proposed steel complex with an estimated capacity of 4.5 million tonnes per year.

 

 

VNSteel

 

Overview: Established in 995 by a merger of Metal Corporation and Steel Corporation, VNSteel is Vietnam’s largest steel company and has various manufacturing plants and a distribution system across the Country. The total capacity of VNSteel including that of its joint ventures is around 2.2 million tonnes with a product mix ranging from crude steel, high quality construction steel to sheet and plate products serving other economic sectors.

 

Project Updates: The Company has completed the feasibility study for the steel complex, to be developed in 3 phases. Tata Steel, in collaboration with VNSteel and VICEM has also completed the detailed project report for Phase1, that is the cold rolling mill.

 

 

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