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Tata Steel is making strategic investments to secure raw material for its business across the world. The Company thus entered into a Memorandum of Understanding (MoU) with Riversdale Mining Limited, a company listed on the Australian Stock Exchange, to become a strategic investor in Riversdale’s Mozambique Coal Project. Through the MoU, Tata Steel acquired a 35% stake in the project for a sum of A$100 million. Hard coking coal derived from this project will be supplied to the Corus facilities in the UK and Europe. It will, in the future, also meet the Company’s requirement in India, as they grow.
Elaborating on the rationale behind the investment, the Managing Director, Mr B Muthuraman, said, “The Memorandum of Understanding with Riversdale is in line with Tata Steel’s stated strategy of progressing towards raw material security for its global business. This partnership gives Tata Steel an opportunity to jointly explore part of a large coal basin, which could prove to be a potential source for meeting a part of the raw material requirement and enhancing the long-term competitiveness of the global operations.”
The Mozambique Coal Project comprises
the coal tenements of premium hard
coking coal over an area of 24,960
hectares. The Definitive Agreements |
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Mr A D Baijal and Mr Michael
O’Keeffe at the historic occasion
are
expected to be finalised and executed by November 30, 2007, after the Scoping Study is complete
Mr Michael O’Keeffe, CEO and Chairman of Riversdale said, “The Memorandum of Understanding with Tata Steel is a decisive corporate event for Riversdale and is a definitive recognition of the Moatize Coal Basin as a significant new source of supply of hard coking coal products for the global steel industry. The MoU culminates a lengthy and thorough search for a strong strategic investor.
Tata Steel is one of the most dynamic steel companies in the world. Throughout their long history, they have demonstrated consistent ability to thrive across many market cycles. They are an ideal strategic partner for Riversdale, and offer our shareholders the most efficient way to realize value from the development of Riversdale’s world-class projects.” |
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After Gram Sabhas at Chhattisgarh, officers of the Company met villagers of Tontoposhi and those within its vicinity, the site of its proposed Jharkhand Steel Project. At the meeting organised on June 24, 2007, a team from Tata Steel addressed a large gathering of villagers. The one-to-one discussion covered all key topics and issues raised by the villagers. The Company officials explained its proposed Resettlement & Rehabilitation policy in detail and the benefits that would accrue to them once the new steel plant comes up. The villagers expressed their satisfaction with the
Company’s development plan for the area
and the resettlement and rehabilitation
of the project-impacted. |
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They also expressed their delight on being given a formal platform to share their apprehensions. While Tata Steel’s R&R Policy has been finalised, it will be released after the Government of Jharkhand announces its R&R policy.
Meanwhile the villagers are being educated on the merits of the Tata Steel Parivar programme, which aims at covering all those impacted by its project. Tata Steel has expressed its intention to roll out the programme at every greenfield site. |
