Tata Steel, Ivory Coast firm ink mining deal

Tata Steel, the world's sixth largest steelmaker, has entered into a joint venture agreement with Sodemi for the development of Mount Nimba iron ore deposits in Ivory Coast (West Africa). This is Tata Steel's first joint venture for iron ore.

The Mt Nimba deposit, spread over 3 countries -- Liberia, Guinea and Ivory Coast, is one of the biggest in West Africa.

Sodemi is a 100 per cent state owned company formed for development of mineral resources in the country. It already has a manganese mining operation in Ivory Coast and a partnership for gold mining and another for drilling.

The JV was signed in the presence of Monnet Emmanuel Leon, Minister of Mines and Energy, Momy Guei, chairman of Sodemi, Jean Likane, MD, Sodemi, B Muthuraman, MD, Tata Steel, A D Baijal, Vice President (Global Mineral Resources) Tata Steel and other officials from the Government of Ivory Coast and Tata Steel.

The project will be implemented by a joint venture company, in which Tata Steel will have a major stake.

The initial phase will involve exploration and detailed feasibility assessments followed by construction of the mine and other facilities. The iron ore from this project will be supplied to Tata Steel facilities, especially those located in the United Kingdom and Netherlands.

Tata Steel acquired Anglo-Dutch steelmaker Corus earlier this year in a $12 billion deal. With the recent acquisition of Corus, the combined enterprise has an aggregate crude steel production capacity of around 28.1 million tonnes and approximately 82,700 employees across four continents.

Monnet Emmanuel Leon said, "Ivory Coast is very happy to have identified Tata Steel as its partner for this mega iron ore project. It is a major step towards development of the country and will improve lives in many ways. We are convinced that Tatas have the technical and financial capability along with the experience to undertake this project to a successful implementation".

Jean Likane Yagui, Managing Director of Sodemi, said "We are writing a new chapter in the history of Ivory Coast  with Tata Steel".

B Muthuraman, managing director, Tata Steel, said, "Tata Steel is very pleased to have signed this agreement. Tata Steel has a vast experience in mining, spanning several decades and will introduce the best practices for mining the environment and project management. It is Tata's philosophy to participate in a country's development process.