Tata Steel on Friday said it has signed agreements with Quebec government for investing Canadian dollar 175 million (nearly Rs 875 crore) to set up mining operations in Quebec Newfoundland and Labrador peninsula in Canada.
"Tata Steel Minerals Canada together with its parent companies signed definitive agreements for concluding investments of Canadian dollar 125 million as equity and Canadian dollar 50 million as debt with the government of Quebec's investment entities, Resources Quebec (RQ) and Investment Quebec, (IQ) respectively, totaling Canadian Dollar 175 million," Tata Steel said in a BSE filing.
It further said: "The investment will result in an 18 per cent equity stake for Resources Quebec in Tata Steel Minerals Canada in line with the carrying value of the investment in Canadian iron ore assets for Tata Steel. Consequently, the shareholdings of Tata Steel and New Millennium Iron will be adjusted to 77.68 per cent and 4.32 per cent, respectively".
Tata Steel Minerals Canada is a joint venture established in October 2010 by the Indian firm and New Millennium Iron Corp, with the former owning 94 per cent.
Tata Steel said it has invested in Eastern Canada to set up mining operations across several deposits straddled across the Quebec-Newfoundland and Labrador peninsula and multiple processing facilities, including a state-of-the-art beneficiation plant.
"The project has consequently enabled the development of infrastructure facilities, including rail, roads, telecommunications and port, that has had significant positive impact on the socio-economic landscape in Quebec, Newfoundland and Labrador," it added.
Tata Steel Group Executive Director (Finance and Corporate) Koushik Chatterjee said: "This investment signals the Government of Quebec's co-operation in supporting sustainable development in line with the objectives of its Plan Nord Initiative.."
The company is confident that the Quebec government's investment will facilitate implementation of Tata Steel Mineral Canada's future plans of ramping up production, improving cost competitiveness and the development of the mineral deposits in Quebec.
The stock of Tata Steel was trading 1.44 per cent higher at Rs 402.80 on BSE.
