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.
Bowen Basin Project
Tata Steel has a strategic interest of 5% in the coal-mining project in Australia in partnership with Vale, Nippon Steel, JFE and POSCO with up to 20% off -take rights. The Joint Venture was formed for the development of a Greenfield underground coal project in Bowen Basin, Queensland. The first raw coal production started in August 2006 and the mine is currently producing around 1.8 mtpa.
Northern Quebec, Labrador and Newfoundland provinces
Tata Steel Minerals Canada Limited (TSMC) is a joint venture established in October 2010 by Tata Steel Ltd. and New Millennium Iron Corp.(TSX: NML). Tata Steel owns 80% and NML owns 20% stake in the company. TSMC is part of Tata Steel Group of companies.
TSMC is developing the Direct Shipping Ore (DSO) project which involves mining, crushing, washing, screening and shipping the sinter fines and pellet fines to Tata Steel's European steel making facilities.
TSMC is also involved with New Millennium Iron Corp.(TSX: NML) in undertaking a Feasibility Study of the LabMag and KeMag iron ore deposits which form a part of the 150-km long Millennium Iron Range in northern Canada.
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- 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 Expansion Project
The Financial Year 2012-13 marked a major milestone in operating history of Tata Steel as the capacity expansion at Jamshedpur was completed with most of the facilities of 2.9 mtpa brownfield expansion being commissioned for production. Full ramp up of the capacity was achieved in March 2013. An incremental 1 million tonnes of steel was produced during the year, taking the total production to 7.94 million tonnes.
- Setting up a pellet plant with a capacity of 6 million tonnes per annum
- Setting up a new Blast Furnace with a capacity of 3 million tonnes per annum, a new LD Shop and a Thin Slab Caster and Rolling Mill of 2.54 million tonnes per annum capacity to produce Hot Rolled Coils.
- Augmentation of the Noamundi and Joda Iron Ore Mines
- Setting-up of two coke ovens batteries with a capacity of 0.7 million tonnes per annum each.
- Besides the main production units, the expansion project also included setting up the required support systems such as power, water, utilities, raw material handling and plant logistics. All the production facilities have been commissioned in phases.
The expansion project provides another opportunity for Tata Steel to continue its journey towards producing ‘Green Steel’. The brownfield expansion project has been challenging, as it required a large volume of construction work to be carried out with minimum disturbance to the existing operations.
Commissioning of Coated Steel Manufacturing Plant
Project Highlights: Tata Bluescope Steel Ltd. (TBSL) is a 50:50 joint venture between Tata Steel Ltd. and Bluescope Steel Australia. TBSL’s coated steel division has a new state-of-the art manufacturing facility at Bara, Jamshedpur with a capacity to produce 250,000 tonnes per annum in Zinc-Aluminium (Zn-Al) coated coils.
JV between Tata Steel & Nippon Steel Corporation
The implementation of the 0.6 mtpa Continuous Annealing and Processing Line (CAPL) project at Jamshedpur for the production of automotive cold rolled flat products is progressing as per schedule. A Joint Venture Company between Nippon Steel Corporation and Tata Steel India will complete the project implementation and serve the growing needs of Indian automotive customers for high-end cold rolled coils and sheets. CAPL technology is best suited for the production of high-quality automotive skin panel steels and for the production of high-strength grades of cold rolled steels. These product offerings will expand the existing product range of cold rolled coils and sheets for automotive customers, thereby enabling them to substitute imports and achieve their objective of localisation.
Bastar Greenfield Project
The Company has signed an MoU with the Government of Chhattisgarh for setting up of a 5 mtpa Greenfield integrated steel plant in Bastar. Land has been acquired by the Government and been transferred in favour of the Department of Industries, which will subsequently lease it out to Tata Steel Limited.
- The letter of intent from CSIDC has been issued. Tata Steel has requested for demarcation without any encumbrances, as per terms of MoU, before taking possession of the said land.
- Further, Chhattisgarh Government has accorded approval for drawing water from the river Sabri.
- The Ministry of Railways, Government of India has granted an in-principle approval for the railway corridor. Public hearing for the Environment Clearance has been successfully conducted.
- Prospecting License for iron ore has been granted in Bailadila-I deposits after obtaining necessary approvals from the Ministry of Environment and Forest and Ministry of Mines, Government of India.
- Prospecting License for Pyroxenite in the close proximity of iron ore area is in an advanced stage of consideration by the State Government.
In line with Tata Steel’s long tradition in Corporate Social Responsibility, several activities in the field of health, youth and women empowerment, sports and skill development are being carried out for local residents as well as for those from displaced families.
The new facility coming up at Kalinganagar will augment Tata Steel's product range to meet the changing customer needs in segments that the Company serves currently. These include Automotive, Packaging, Tubing, Construction, Appliances and Railways. The project will comprise major facilities like the Sinter Plant, Pellet Plant, Coke Plant, Blast Furnace, Steel Melt Shop, Hot Strip Mill, Cold Rolling Mill and Raw Material Handling units. The first phase is expected to be completed by 2015.
Project Highlights:The execution of the project is in full swing, with clearances required for project execution, including environmental clearance, having been obtained. The Greenfield project execution has made significant progress on all fronts during the year. Major orders for all zones of the phase 1 of the project have been placed.
Kalinganagar Industrial Area is projected to be developed for a population of over 10 lakh by 2025 and it will be extended to 177 square kilometers as envisaged by the State Government.
Progress in Resettlement and Rehabilitation
- Tata Steel views itself as having adopted the families displaced by the Kalinganagar project as part of its own ‘family’, the Tata Steel Parivar. As of December 15, 2012, 993 families (out of 1234 families) have relocated voluntarily in support of the project.
- The Resettlement and Rehabilitation (R&R) scheme that Tata Steel Parivar is implementing at Kalinganagar has been designed to provide fair compensation to ensure that the displaced families are provided with practical and emotional support to enable them to adapt to their new surroundings.
- The Company has set up three modern and environment-friendly relocation settlements at Trijanga, Sansailo and Gobarghati. 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. Tata Steel is also developing a rehabilitation and resettlement set up at Ramathenga, the location opted for by the displaced families themselves near Kalinganagar.
- A hospital with all amenities is also being provided by the Company.
- The income of the families who were the first to move to their new homes in 2006 has since then almost doubled, while their asset value has almost quadrupled.
- Planned rehabilitation, the creation of alternative income-generating activities, the health and educational facilities provided by the Company – all of these have helped the relocated families attain the Millennium Development Goals (MDG) of the United Nations well before the 2015 deadline.
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Nimba Iron ore Project
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 Mt. Nimba deposit spread over 3 countries – Liberia, Guinea and Ivory Coast is one of the biggest iron ore deposits in West Africa. Tata is currently finalising exploration and feasibility studies for its Mt. Nimba and Mt. Gao concessions.
Riversdale in Mozambique
Benga Coal Project - Key coal exploration tenements (the Benga and Tete licences)
In November 2007, Tata Steel entered into Definitive Agreement with Riversdale Mining Company, an Australian listed company for purchasing 35% stake in its Mozambique Coal Project. In April 2011, British Australian Mining Company, Rio Tinto took over Riversdale Mining Company.
The Company holds 35% in RioTinto Benga (Mauritius) Ltd. (RTBML) with the balance 65% held by Rio Tinto. In Financial Year 2012-13 RTBML produced 1.41 Million tonnes of Coal (0.67 million tonne of coking coal and 0.74 million tonne of thermal coal).
IJmuiden Steel Works
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 at present. A number of capital expenditure schemes are in progress at Ijmuiden, including the undertaking of major repairs of the Blast Furnace at IJmuiden.
Implementation of multi-year improvement programme at the IJmuiden steelworks is on at the IJmuiden steelworks. Once complete, IJmuiden’s annual effective capacity will rise from 7.2 MT to 7.7 MT of liquid steel.
Leveraging rising construction demand, operations in Singapore performed exceedingly well with an overall sales volume of 900 ktpa. Implementation of energy saving technologies made NatSteel’s Electric Arc Furnace (EAF) one of the most energy efficient arc furnaces worldwide.
- NatSteel implemented numerous IT and automation projects to enhance productivity across its operations in Singapore.
- Singapore continues to grow its value added product line in the Reinforcement Solutions business. In 2012-2013, the Company completed several projects in the mesh plant in Singapore and initiated a revamp in the Cut.
- Operations were Reinforcement Solutions in Xiamen, China and Johor in Malaysia.
NatSteel’s operations in China performed remarkably in spite of volatility in steel prices, weakening construction demand and competition amongst several players. The recent capacity expansion from the new Fuzhou plant increased coverage in China's Fujian province where demand is expected to be relatively stronger.
NatSteel Xiamen, known for producing high end reinforcement bars with seismic properties, has started operations in Fuzhou, in the Fujian province of China in August 2012. NatSteel also started its downstream operations in Xiamen in March 2013.
Rayong Greenfield Project
The Global Wires Business (GWB) of the Company entered into a 60:40 joint venture with Nichia Steel Works, Japan in 2012 - 2013. The joint venture “TSN Wires Co. Ltd” is in the process of setting up a 36,000 tpa Greenfield plant at Rayong in Thailand for the manufacture of premium galvanised and aluminium coated steel wires. The products made at TSN Wires will be sold in Thailand, the ASEAN region and Oceania markets.
The manufacturing facilities at Tata Steel Europe comprise manufacturing hubs (Strip Products Mainland Europe, Strip Products UK, Long Products Europe and Downstream Operations) and Integrated Businesses (Plating, Cogent Power, Speciality and Bar).
Port Talbot – Plant Upgrade
The operational capabilities in Europe have also been strengthened through rebuilding of a blast furnace at Port Talbot in the UK and the improvement initiatives that are targeted at efficiency enhancements, product rationalisation and restructuring.
Scunthorpe - Operational excellence
Over the last two years Tata Steel Europe has aligned its industrial footprint with market conditions. The Company continues to upgrade its plants with the aim of improving asset performance and cost competitiveness. The restructuring of the Scunthorpe Works, announced in May 2011, was implemented according to plan over the following 10 month period.
Hayange - Railway Project
Investment in the 108m long rail facility at Hayange was completed during the year re-inforcing its position as a top class rail manufacturer.