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
Iron Ore Projects
A joint venture Company Tata Steel Minerals Canada Limited (TSMC) was formed in October 2010 for development of Direct Shipping Ore DSO Project. Tata Steel holds 80% equity stake in TSMC and the balance 20% equity stake is held by New Millennium Iron Corp., Canada NML. NML owns Direct Shipping Ore (DSO) project, having estimated proven and probable reserves of 64.1 million tonnes and Taconite projects, namely Labmag and Kemag with a combined resource size of 5.65 billion tonnes.
- TSMC has commenced production in September 2012 and achieved the production of 0.30 million tonnes in the Financial Year 2012-13 against the plan of 0.25 million tonnes. A production of 2 million tonnes is planned for the Financial Year 2013-14.
- In recognition of the progress made by the Company, TSMC has been conferred with the 'Miner of the Year Award' by the Canadian Institute of Mining, Minerals and Petroleum (CIM), New Foundland and Labrador.
- In March 2013, the Company through its subsidiary TSMC, entered into a framework arrangement with Labrador Iron Mines (LIM) for acquisition of 51% stake in LIM's Howse deposit which is near the Company's DSO Project. This arrangement is expected to enhance resource and production and will also improve operational flexibility relating to DSO Project.
- 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
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.
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.
- 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.
As part of its long-term strategy, the Company plans to enter into a long term charter for capsize vessels in 2009.
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%.
In Australia, the downstream business has a capacity of 2,50,000 tonnes per year.
At Philippines, NatSteel is a 40% partner in the Joint Venture with a capacity of 3,50,000 tonnes per year.
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.
Richards Bay (in uMhlathuze Municipality)
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.
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.
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.
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.