Canada’s province of Quebec just invested about $130 million (Cdn$175 million) in an iron ore project majority owned by Tata Steel Minerals Canada (TSMC), a subsidiary of Indian giant Tata Steel.
The deal aims to advance development of the Direct Shipping Ore (DSO) property, which straddles the border between Quebec and Labrador, with mineral deposits on both provinces.
The transaction, first announced in July, consisted of a loan of $50 million from Investissement Quebec along with $125 million for an 18% equity stake in TSMC through Ressources Quebec.
As a result, the shareholdings in TSMC of Tata Steel and NML are now 77.68% and 4.32%, respectively, the parts said in a statement.
The financing comes at a time of improved steel demand from China, the world largest iron ore consumer, which has boosted prices for the commodity more than 50% this year.
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