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31. Mai 2007

Tata takes major stake in Vietnam steel plant

India’s Tata Steel Ltd, the world’s sixth-largest steelmaker, said on Tuesday it would take a stake of up to 65 percent in a steel plant venture with Vietnam and a 30 percent stake in a nearby iron ore mine.

The steel plant and the iron ore mining firm are parts of a steel complex that Tata and state-run Vietnam Steel Corp (VSC), the country’s top steelmaker, would build with investment of $3.5 billion, the Vietnamese government said.

On Tuesday, Tata signed a memorandum of understanding with VSC to conduct a feasibility study by September 2008 on a complex with capacity for 4.5 million tonnes of steel products by 2018.

“The project aims to optimise the resources from Thach Khe iron ore mine in Ha Tinh province to turn out steel products to meet economic demand,” VSC Chief Executive Dau Van Hung said.

Hung was referring to the central coastal province of Ha Tinh, 340 km (210 miles) south of Hanoi. The Thach Khe mine is 12 km east of the north-south Highway One, close to the sea.

Its iron ore reserves are estimated at more than 500 million tonnes, which are located deep below sea level, of which around 300 million tonnes would be recoverable, Pham Chi Cuong, chairman of the Vietnam Steel Association, said.

“The size of the mine is average, but the ore has a high iron content of more than 60 percent,” Cuong told Reuters.

Cuong said the complex would produce steel plate and sheet, which have not been manufactured in Vietnam, one of the world’s fastest growing economies but which has to import half its steel product demand, mainly from China.

“The project will serve as the backbone for Vietnam’s steel industry during 2015-2020,” he said.

Tata Managing Director B. Muthuraman estimated Vietnam’s steel product demand at 7 million tonnes a year. reutersHANOI: India’s Tata Steel Ltd, the world’s sixth-largest steelmaker, said on Tuesday it would take a stake of up to 65 percent in a steel plant venture with Vietnam and a 30 percent stake in a nearby iron ore mine.

The steel plant and the iron ore mining firm are parts of a steel complex that Tata and state-run Vietnam Steel Corp (VSC), the country’s top steelmaker, would build with investment of $3.5 billion, the Vietnamese government said.

On Tuesday, Tata signed a memorandum of understanding with VSC to conduct a feasibility study by September 2008 on a complex with capacity for 4.5 million tonnes of steel products by 2018.

“The project aims to optimise the resources from Thach Khe iron ore mine in Ha Tinh province to turn out steel products to meet economic demand,” VSC Chief Executive Dau Van Hung said.

Hung was referring to the central coastal province of Ha Tinh, 340 km (210 miles) south of Hanoi. The Thach Khe mine is 12 km east of the north-south Highway One, close to the sea.

Its iron ore reserves are estimated at more than 500 million tonnes, which are located deep below sea level, of which around 300 million tonnes would be recoverable, Pham Chi Cuong, chairman of the Vietnam Steel Association, said.

“The size of the mine is average, but the ore has a high iron content of more than 60 percent,” Cuong told Reuters.

Cuong said the complex would produce steel plate and sheet, which have not been manufactured in Vietnam, one of the world’s fastest growing economies but which has to import half its steel product demand, mainly from China.

“The project will serve as the backbone for Vietnam’s steel industry during 2015-2020,” he said.

Tata Managing Director B. Muthuraman estimated Vietnam’s steel product demand at 7 million tonnes a year.

reuters

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