New Millennium, Tata Steel in talks to extend deal
New Millennium Capital Corp said it is in talks with India's Tata Steel to extend the exclusivity agreement, which expired on Friday, for the development of its iron ore projects in Quebec.
January 03, 2011 / 09:16 IST
New Millennium Capital Corp said it is in talks with India's Tata Steel to extend the exclusivity agreement, which expired on Friday, for the development of its iron ore projects in Quebec.
Shares of the Canadian company have climbed over 40 percent in the last one month on speculation that it is in talks with the world's 7th largest steel producer for its LabMag and KeMag projects, which have over 9 billion tons in resources.Tata Steel already owns more than 27 percent stake in New Millennium and has acquired an 80 percent stake in its Direct Shipping Ore (DSO) project.Canada, the eighth largest producer of iron ore, has seen a lot of interest from global giants, such as ArcelorMittal and Tata Steel, looking to break the stranglehold of the three biggest miners that control two-third of the global $88-billion seaborne trade in the commodity.Shares of the New Millennium, which touched a life-high of of C$2.48 on Friday morning, were down 17 percent at C$2.00 in afternoon trade on the Toronto Venture Exchange.Tata Steel shares closed at 678.95 Indian rupees on Friday on the Bombay Stock Exchange. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
