Tata Steel’s Canadian arm Tata Steel Minerals Canada on Friday said it had signed a mining partnership worth nearly Rs 875 crore with the country's Quebec province, PTI reported. The company said the partnership will allow it to set up operations in the Quebec-Newfoundland and Labrador Peninsula in the North American country.
Tata Steel Minerals Canada – a joint venture between Tata Steel and New Millennium Iron – had signed “definitive agreements” for investments worth 125 million Canadian dollars (approximately Rs 623.93 crore) in equity and 50 million Canadian dollars (approximately Rs 249.57 crore) in debt, Tata Steel said in a filing with the Bombay Stock Exchange. The parent company said the deal was signed with Resources Quebec and Investment Quebec, the investing arms of the provincial government.
“The investment will result in an 18% equity stake for Resources Quebec in Tata Steel Minerals Canada,” the filing said. “Consequently, the shareholdings of Tata Steel and New Millennium Iron will be adjusted to 77.68 percent and 4.32 percent, respectively.” Tata Steel Group Executive Director (Finance and Corporate) Koushik Chatterjee said the investment showed the regional administration’s “co-operation in supporting sustainable development”.
Shares of Tata Steel increased 1.99% to Rs 405.05 on the Bombay Stock Exchange Sensex on Friday after the company announced the partnership. Stocks of Tata companies have seen drops since the Tata Group announced the ouster of Cyrus Mistry as the chairman of Tata Sons. Mistry was removed from the post following a board meeting of Tata Sons on October 24. The Tata Group group also anticipated legal action by the former executive. Ratan Tata has taken over Mistry's post as interim chairman.