TATA Steel Minerals Canada, a joint venture between New Millennium Iron Corporation and TATA Steel ,has signed a ‘life of mine' agreement for development of NML's direct shipping iron ore project located in western Labrador and north eastern Quebec.

NML has also announced the start of mobilization to commence construction this summer.

TATA Steel has already entrenched interests in New Millennium, which owns one of the largest untapped reserves of magnetite in the world (low grade ore but can be upgraded through pelletization process).

TATAs intend to provide long-term iron ore security to Corus, which was without captive resources, through New Millennium. A Bombay House senior executive told Business Line on Friday that the deal marked further progress in Corus' ore supply.

The agreement, signed on June 8 with the local government of the area, a Canadian aborigine reserve, signifies the community's consent and support to the DSO project. The deal is also meant to benefit the community through training, employment, business opportunities and financial participation in the project.

TATA Steel has exercised its exclusive option to participate in the DSO project and has a commitment to take the resulting production.

TATA Steel also has exercised its exclusive right to negotiate and settle a proposed transaction in respect to the LabMag Project and the KéMag Project.

LabMag contains 3.5 billion tonnes of proven and probable reserves at a grade of 29.6% Fe plus 1 billion tonnes of measured and indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of inferred resources at an average grade of 29.3% Fe.

(Sourced from Business Line)