Tata Steel in talks with 2 mining firms for JV

Tata Steel in talks with 2 mining firms for JV. Aiming raw material security primarily for its global operations, the world's sixth largest steelmaker, Tata Steel, is scouting for iron ore and coking coal mines worldwide and is in talks with two mining firms in Vietnam and South Africa for joint ventures. “We have an option in a South African iron ore mine to enter into a joint venture with the promoters. This project is currently under evaluation,'' Tata Steel said in its annual report for 2008-09. Tata Steel will also take a minority stake in an iron ore mine in Vietnam to feed its proposed JV steel unit there. ."Tata Steel will take a 30 per cent share in the Thach Khe iron ore mine that is about 60 km from the steel project,'' the report added. The steelmaker in 2007 entered into an agreement with Vietnam Steel Corporation to set up a mill. Tata Steel will have a 65 per cent stake in the JV. The South African mine would primarily cater to its European steel firm Corus, which lacks raw material security. “The highest priority is being given to ... ensuring raw material security for the European operations which do not have captive iron ore and coal resources,'' Tata Steel Chairman Ratan Tata said in the report. Tata Steel, however, did not give details of estimated reserves of the two mines.