Central Queensland

Bowen Basin Project

Tata Steel has a strategic interest of 5% in the coal-mining project in Australia in partnership with Vale, Nippon Steel, JFE and POSCO with up to 20% off -take rights. The Joint Venture was formed for the development of a Greenfield underground coal project in Bowen Basin, Queensland.

Project Highlights

• Tata Steel and Vale, along with other joint venture partners (Nippon steel, JFE and Posco) have undertaken a large scale expansion of the Carborough Downs Coal Mine near Moranbah in Central Queensland in Australia.
• The Carborough Downs coal project is majority owned and operated by a subsidiary of AMCI Holdings Australia Pty Ltd.
• The project life is currently estimated to be 14 years and approximately 58 million tonnes of raw coal is expected to be mined during this period.
• There is a further potential resource of 100 million tonnes of raw coal in the unexplored areas and deeper seams.
• The clean coal envisaged to be produced would be low-ash coking coal and PCI coal, highly suitable for steel making.
• Tata Steel also signed an offtake agreement for a proportion of the production over life of the project.
• The first raw coal production started in August 2006 and the mine is currently producing around 1 MTPA.

Project Updates

The first raw coal production started in August 2006 and the mine is currently producing around 1.5 mtpa. The mine is being operated by Long Wall method and expected to produce around 3.0 million tonnes of Coking and PCI coal during FY 2011-12.

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Northern Quebec, Labrador and Newfoundland provinces

Taconite Project

The Taconite Project consists of two worldclass magnetite iron ore deposits on the emerging Millennium Iron Range, which stretches 210 kilometres from western Labrador through eastern Quebec. The LabMag deposit is located in the Labrador portion of the range and the KéMag deposit is located in the Quebec portion.

Project Highlights:

• Tata Steel, through its subsidiary Tata Steel Global Minerals Holdings Pte Ltd., signed a binding Heads of Agreement with New Millennium Capital Corporation, Canada to develop the Labmag and Kemag iron ore deposits, collectively referred to as the Taconite project.
• Tata Steel will participate in a feasibility study of the Taconite Project.

About New Millennium Capital Corp. (NML): The Corporation controls the emerging Millennium Iron Range, known to hold the world’s largest magnetic iron ore deposits. Tata Steel is NML’s largest shareholder and strategic partner.

Direct Shipping Ore Project

Location : Northern Quebec, Labrador and Newfoundland provinces.

Project Highlights:

• A Joint Venture Company, Tata Steel Minerals Canada Ltd. has been formed between Tata Steel Global Minerals Holdings Pte Ltd. and New Millennium Capital Corporation, Canada.
• Tata Steel will own 80% of the JVC and NML 20%.
• The aim was to develop iron ore projects in the region.
• The agreement also provides exclusivity to Tata Steel in the Labmag taconite iron ore property.
• Tata Steel will have 100% offtake rights to the produce of the mine at the time of production commencement.
• The iron ore from this project will serve Tata Steel’s European facilities.
• In June 2010, Tata Steel subscribed to a private placement of Canadian $20 million by NML pursuant to which Tata Steel Global Minerals Holding Pte. Ltd. now holds a 27.4% stake in NML.

Capacity: The DSO resource is estimated to be approximately 100 million tonnes. The LabMag deposit consists of 3.5 billion tonnes of proven and potential mineral reserves. These reserves are contained in the 4.6 billion tonnes of measured and indicated resources and 1.2 billion tonnes of inferred resources.

Project Update: The Feasibility Study estimates proven and probable mineral reserves of 64.1 million tonnes and the project is expected to produce 4 million dry tonnes per year of iron ore products commencing in the second half of 2012. The iron ore from this project will be supplied to Tata Steel Group’s facilities located in Europe.

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Nimba Iron ore deposits in Ivory Coast

Iron ore Project

Project Highlights:

• Tata Steel Limited and SODEMI (State Owned Company for Mineral Development), on December 11, 2007 entered into Joint Venture agreement for the development of Mount Nimba Iron ore deposits in Ivory Coast (West Africa).
• The project will be implemented by a joint venture company – Tata Steel Cote d’ivoire, wherein Tata Steel will have a major shareholding (75%).
• The Mt. Nimba deposit spread over 3 countries – Liberia, Guinea and Ivory Coast is one of the biggest iron ore deposits in West Africa.
• The initial phase will involve exploration and detailed feasibility assessments followed by construction of the mine and beneficiation facilities. The iron ore from this project will be supplied to Tata Steel Group facilities especially those located in the United Kingdom and The Netherlands.

Capacity: To be assessed.

Project Update: In view of the environmental issues encountered in the case of Mt. Nimba, Tata Steel approached the Government of Ivory Coast to grant a prospecting license for Mt. Gao for an early start of the project. The Government of Ivory Coast has granted an exploration license to Sodemi on 30th July 2009 and an Addendum to the Joint Venture Agreement was signed on 29th September 2009 to include Mt. Gao in the Joint Venture Agreement.

Upon transferring the Exploration License for Mt. Gao to the JV company, a helicopter-borne geophysical survey covering 811 sq km has been completed. The team on the site has also done a detailed geological mapping over a 100 sq km area on a 1:10000 scale. Currently exploration work on the ground has been put on hold due to rising security concern in Ivory Coast.

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Riversdale in Mozambique

Benga Coal Project - Key coal exploration tenements (the Benga and Tete licences)

Project Highlights

• Tata Steel and Riversdale Mining Ltd. Australia signed a joint venture agreement on November 30, 2007.
• Under the terms of agreement, Tata Steel will pay AUD100 million (approximately 88.2 million USD) to acquire 35% of Riversdale's Benga and Tete licences.
• The JV comprises two licences (the Benga and Tete licenses) and covers an area of 24,960 hectares (approximately 96.7 square miles).
• The coking coal derived from this project will be supplied to the Tata Steel Group's facilities in Europe, Asia and elsewhere.
• The JV conducted a formal ‘Ground Breaking Ceremony’ in the presence of the President of the Republic of Mozambique, His Excellency Armando Emilio Guebuza on 14th April 2010.
• The official ceremony follows a series of milestones already achieved by the Company such as the signing of the Mining Contract, approval of Environmental Licenses for the Benga Coal Project and the Benga Power Project and the approval of Stage 1 of the Benga Coal Project following the completion of the Feasibility Study for production of 10.6 million ROM tonnes in two phases.
• Other key contracts and agreements include the CHP Plant Supply Contract, a Resettlement Action Plan and the Project Labour Agreement (PLA) which was signed with SINTICIM (the Mozambican National Construction and Mineworkers Union).

Capacity: Potential to extract 720 million tonnes by open-cut methods from a major coal resource in the Benga Licence.

Project Update: Stage I, entails initial production of 5.3 million ROM tonnes per year to produce approximately 1.7 mtpa of high quality hard coking coal and 0.3 mtpa of export thermal coal by Q2 2011.

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Uyun region in the Salalah Province

Limestone Project

Project Highlights

• Tata Steel Limited and the members of the Al Bahja Group, a leading business house of Oman signed a Joint Venture Agreement on January 16, 2008 – Tata Steel has a 70% stake in the joint venture.
• The project envisages mining of limestone in the Uyun region (limestone is the key raw material for producing good quality steel), which lies in the Salalah province of Oman and has large deposits of limestone.

Capacity: To be assessed.

Updates: Exploration and feasibility studies are in progress. The Environmental Impact Assessment has been completed and the mining license is awaited.

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Richards Bay (in uMhlathuze Municipality)

Tata Steel (KZN)

Tata Steel (KZN) is a South Africa based subsidiary of Tata Steel, in the business of producing Ferro Chrome and Charge Chrome. It has moved on from the project phase and become operational since 3rd April 2008 with the switching on of Furnace I.

Highlights of Operation

• The ground-breaking ceremony of Ferro Chrome Project was held at Richards Bay on August 21, 2006.
• The business model of the plant includes taking high quality Chrome Ore from India and elsewhere, converting it into Ferro Chrome in Richards Bay, and exporting the finished product to various customer destinations.
• The briquette technology being used by the company is environment friendly and relatively new to South Africa. TSKZN is one of the most environment compliant plants globally.
• TSKZN will produce some 150 000 tonnes per annum of ferrochrome during the first few years of operation. All of the ferrochrome produced by TSKZN will be exported through the port of Richards Bay. More than 90% of TSKZN ferrochrome (with chromium content of 52% ‐ 65% depending on ore source) will be utilised in the production of stainless steel.
• On 17 September 2009, TSKZN achieved two milestones - the flag off of 100,000mt of FeCr sales and the inauguration of the Metal Recovery Plant.

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Ha Tinh Project

Steel Project

Project Highlights

• A proposed steel complex with an estimated capacity of 4.5 million tonnes per year.
• Tata Steel signed an MoU with Vietnam Steel Corporation (VSC) on May 29, 2008 to develop a steel complex in Ha Tinh. Another MOU was signed to set up a cold rolling mill in Ha Tinh province.
• Tata Steel is partnering with VSC in establishing a steel complex in Ha Tinh province, which will be phased over 10 years. On the successful completion of the study and financial closure, Tata Steel will have a stake of minimum 65% and VSC will have a stake of 35% in the Steel complex.
• Tata Steel will also have a stake of 30% in Thach Khe Iron Ore Joint Stock Company, which would undertake mining in the Thach Khe iron ore mine.

Capacity: A proposed steel complex with an estimated capacity of 4.5 million tonnes per year.

VNSteel

Overview: Established in 995 by a merger of Metal Corporation and Steel Corporation, VNSteel is Vietnam’s largest steel company and has various manufacturing plants and a distribution system across the country. The total capacity of VNSteel including that of its joint ventures is around 2.2 million tonnes with a product mix ranging from crude steel, high quality construction steel to sheet and plate products serving other economic sectors.

Project Updates: The Company has completed the feasibility study for the steel complex, to be developed in 3 phases. Tata Steel, in collaboration with VNSteel and VICEM has also completed the detailed project report for Phase1, that is the cold rolling mill.

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