Tata Steel: Venturing into the Canadian Market
June 7, 2012
This presentation may include certain forward-looking statements about future
events and/or financial results which are forward-looking in nature and subject to
risks and uncertainties. Forward-looking statements include without limitation,
statements regarding the Company’s plans, goals or objectives. Although the
Company believes that its expectations reflected in these forward-looking
statements are reasonable, such statements involve risks and uncertainties and
no assurance can be given that actual results will be consistent with these
forward-looking statements. Further, the information contained herein, while
obtained from sources which we believe are reliable, is not guaranteed as to its
accuracy or completeness.
Tata Steel Minerals Canada Limited shall not be liable or responsible for any
claim or damage, direct or indirect, special or consequential, incurred by the user
arising out of the interpretation, reliance upon or other use of the information. The
contents of this presentation is for information purposes only and does not
constitute an offer to sell or a solicitation to purchase any securities. Users should
not rely on information for any purpose other than for gaining general knowledge
of the Company.
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DISCLAIMER
CONTENTS
Tata Group & Tata Steel Introduction
Tata Steel CSR & Sustainability initiatives
Tata Steel Minerals Canada initiatives
Tata Steel Minerals Canada Infrastructure Challenges
Tata Steel Minerals Canada Labour Challenges
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CONTENTS
Tata Group & Tata Steel Introduction
Tata Steel CSR & Sustainability initiatives
Tata Steel Minerals Canada initiatives
Tata Steel Minerals Canada Infrastructure Challenges
Tata Steel Minerals Canada Labour Challenges
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TATA GROUP OF COMPANIES
• One of India’s largest business groups
• Diverse businesses in 7 sectors
• Operations in over 80 countries
• Largest employer in private sector with over 425,000 employees
• Group revenue of over $80 Billion in FY 2011
• International income ~ 60%
• Over 7 % of Bombay Stock Exchange's market cap
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Founder’s philosophy
“In a free enterprise, the community is not just another stakeholder in the business, but in fact the very purpose of its existence”
- Jamsetji N Tata, Founder (1839-1904)
FOUNDER’S PHILOSOPHY
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Diversified yet a universal value system
• Trusteeship
• Integrity
• Respect for individuals
• Credibility
• Excellence
TATA PHILOSOPHY: INCLUSIVE & STAKEHOLDER FOCUSED
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“The Tata philosophy of management has always
been and is today more than ever, that corporate
enterprises must be managed not merely in the
interests of their owners, but equally in those of
their employees, of the customers of their
products, of the local community and finally of the
country as a whole.”
J.R.D. Tata (Chairman 1938 – 1991)
GROUP PHILOSOPHY
TATA STEEL: OVER 100 YEARS OF EXPERIENCE
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Among the top 10 steel makers in the world
Fortune 500 company
Over 80,000 employees
Group revenue: US$ 33 Billion
Capacity: 30 million tonnes
• Capacity: ~10 mtpa
• 22 Distribution
centres
• Capacity: ~ 10 mtpa
• 22 distribution centres
TATA STEEL IN MINING SINCE 1907
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DSO
Taconite
Ivory Coast
Riversdale JV,
Mozambique Carborough
Downs JV,
Australia
Tata Steel is continuously exploring opportunities in various parts of the world.
Margam
Coal
• Riversdale, Mozambique
• CDJV, Australia
• Margam, UK
Iron Ore
DSO, Canada
Taconite, Canada
Mt. Gao, Ivory Coast
Sedibeng, South Africa
India
• Coal, Iron Ore, Chrome,
Manganese
South Africa
CONTENTS
Tata Group & Tata Steel Introduction
Tata Steel CSR & Sustainability initiatives
Tata Steel Minerals Canada initiatives
Tata Steel Minerals Canada Infrastructure Challenges
Tata Steel Minerals Canada Labour Challenges
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TATA STEEL : POLICIES ALIGNED FOR INCLUSIVE &
SUSTAINABLE GROWTH
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Tata Steel Group Vision
We aspire to be the global steel industry benchmark for
Value Creation and Corporate Citizenship
CSR & Social Accountability Policy
Tata Steel believes that the primary purpose of a business
is to improve the quality of life of people.
Tata Steel shall volunteer its resources, to the extent it
can reasonably afford, to sustain and improve healthy
and prosperous environment and to improve the quality
of life of the employees and the communities it serves.
Tata Steel shall conduct its business ever mindful of its
social accountability, respecting applicable laws and with
regard for human dignity.
Tata Steel shall positively impact and influence its partners
in fostering a sense of social commitment for their
stakeholders.
OBJECTIVE, STRATEGY & DELIVERY ARMS
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CONTENTS
Tata Group & Tata Steel Introduction
Tata Steel CSR & Sustainability initiatives
Tata Steel Minerals Canada initiatives
Tata Steel Minerals Canada Infrastructure Challenges
Tata Steel Minerals Canada Labour Challenges
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TATA STEEL MINERALS CANADA (TSMC)
• TSMC is a joint venture company established in October 2010 by Tata Steel
and New Millennium Capital Corp. (“NML”), now known as New Millennium
Iron. Tata Steel owns 80% of the JVC and NML the remaining 20%.
• TSMC is developing a Direct Shipping Ore (DSO) Project in the provinces of
Quebec and Newfoundland & Labrador.
• The DSO property is comprised of 25 hematite deposits with a resource
potential of 125 million tonnes.
• The project comprises of mining and concentrating the run-of-mine ore with a
state-of-art beneficiation facility to produce 4.2 MTPY of sinter and super fines
with Fe > 64.5% & Al2O3 + SiO2 < 4.5%,.
• TSMC is also conducting a Feasibility Study on behalf of Tata Steel for
Taconite Project jointly with NML.
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CURRENT TATA STEEL INITIATIVES IN CANADA
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TATA STEEL IN CANADA : KEY CONSIDERATION FOR SUSTAINABILITY & DEVELOPMENT
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• Minimize impact on the long-term health of the ecosystems.
• Minimize adverse impact to the economy, society and culture of the
nearby human populations.
• To provide the affected populations with adequate economic
opportunities for the life of the mine.
• Facilitate maintaining or strengthening the traditional economy of the
area.
• Equal (or preferential) treatment of women.
KEY CONSIDERATION CONTD………
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• Use of technologies to enhance the life of mine.
• Design and operate mines to avoid or reduce negative
environmental impacts.
• Focus on restoring habitats and ecosystems altered by mining.
• Support training initiatives for the affected populations that will allow
them to participate in other economic activities during closure of
mine.
ENVIRONMENT
• Much of the DSOP infrastructure is located on sites affected by prior
mining activities.
• DSOP tailings and process water are disposed of in abandoned open
pit mines that do not contain fish.
• Site activities are implemented as per the Environmental regulation
act by the Provincial Government.
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Tailing Pond
Process Plant
OPPORTUNITIES TO THE COMMUNITIES
Tata Steel has successfully concluded 4 IBA’s with First Nations.
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IBA: TOOLS FOR ECONOMIC DIVERSIFICATION
• Training/education measures in IBAs also
• assist in diversification.
• IBAs provide life-of-mine financial benefits
• that can be used for economic
diversification.
• IBAs provide affected First Nations with
preferential access to jobs and contracts for
life of mine.
• Life-of-mine financial provisions of IBAs
allow First Nations to establish socio-
economic development programs and
traditional activities funds.
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SUPPORTING COMMUNITIES
• Women’s Employment Plan ensures employment,
contracting, training and other opportunities for Native and
non-Native women.
• Scholarship programs for secondary students in seven
First-Nation communities.
• Financial and in-kind support to Inuit Youth Mining
Education Strategy.
• IBAs contain additional education/training provisions.
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RESPECTING CULTURE & COMMUNITY
• Fly-in/fly-out operation avoids need to build
new communities and minimizes in-migration.
• Workers camps located far from native
communities, and employees not allowed
vehicles for personal use.
• Workers not allowed to hunt, fish and trap.
• Employee leaves structured to permit hunting
of Caribou and Geese.
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CONSERVATION & EXPLORATION TO EXTEND MINE LIFE
• State of the art processing plant to upgrade lower grade of ore
• Target of current exploration is to extend life of the Project to
over 20 years
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TACONITE PROJECT FEASIBILITY STUDY
• Tata Steel and NML sign binding agreement in
March 2011 for Feasibility Study of Taconite
Project.
• LabMag and KéMag deposits being evaluated.
• Joint Feasibility Study underway and completion
targeted by end of 2012.
• Feasibility Study budget of $50 million.
• Potential to be one of the lowest-cost pellet
producers in North America.
• Subject to the outcome of the Feasibility Study,
Tata Steel will make an investment decision.
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LabMag Billion
Tonnes
Grade
(Fe%) KeMag
Billion
Tonnes
Grade
(Fe%)
Proven + Probable 3.5 29.6 Proven + Probable 2.1 31.2
Measured + Indicated 1.0 29.5 Measured + Indicated 0.3 31.2
Inferred 1.1 29.3 Inferred 1.0 31.2
CONTENTS
Tata Group & Tata Steel Introduction
Tata Steel CSR & Sustainability initiatives
Tata Steel Minerals Canada initiatives
Tata Steel Minerals Canada Infrastructure Challenges
Tata Steel Minerals Canada Labour Challenges
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INFRASTRUCTURE CHALLENGES
• Independent Operator for
KéRail appointed.
• TSH MOU for tariff in
place.
• TSH Rehabilitation under
discussion.
• QNSL agreement
finalised
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INFRASTRUCTURE CHALLENGES
• Port options at Sept-Îles or Pointe-Noire under finalization.
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CONTENTS
Tata Group & Tata Steel Introduction
Tata Steel CSR & Sustainability initiatives
Tata Steel Minerals Canada initiatives
Tata Steel Minerals Canada Infrastructure Challenges
Tata Steel Minerals Canada Labour Challenges
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LABOUR CHALLENGES
• Lack of skilled labour
• Many projects on the go in the area
• The Fort McMurray factor
• Remote location of our project site
• What are we doing to overcome these challenges?
• Offer competitive wages and benefits in order to attract skilled tradespeople;.
• Hire locally and persuade Newfoundland tradespeople working outside the
province to come back “home” to work;
• Invest in training by providing career development opportunities to local
youths by partnering with schools and First Nations communities.
• Provide world-class camp and FIFO schedule.
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IN CONCLUSION
Tata Steel is working towards:
• Providing needs of the local populations.
• The socio-economic initiatives should assist those populations to ensure
their economic health and socio-cultural well-being.
• Future generations will benefit from the financial support, training and
education over the long term.
• Supporting sustainable mining.
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THANK YOU