tata steel: venturing into the canadian market...value creation and corporate citizenship csr &...

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.

2

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

3

CONTENTS






4

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

5

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

6

Diversified yet a universal value system

• Trusteeship

• Integrity

• Respect for individuals

• Credibility

• Excellence

TATA PHILOSOPHY: INCLUSIVE & STAKEHOLDER FOCUSED

7

“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

8

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

9

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






10

TATA STEEL : POLICIES ALIGNED FOR INCLUSIVE &

SUSTAINABLE GROWTH

11

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

12

CONTENTS






13

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.

14

CURRENT TATA STEEL INITIATIVES IN CANADA

15

TATA STEEL IN CANADA : KEY CONSIDERATION FOR SUSTAINABILITY & DEVELOPMENT

16

• 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………

17

• 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.

18

Tailing Pond

Process Plant

OPPORTUNITIES TO THE COMMUNITIES

Tata Steel has successfully concluded 4 IBA’s with First Nations.

19

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.

20

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.

21

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.

22

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

23

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.

24

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






25

INFRASTRUCTURE CHALLENGES

• Independent Operator for

KéRail appointed.

• TSH MOU for tariff in

place.

• TSH Rehabilitation under

discussion.

• QNSL agreement

finalised

26

INFRASTRUCTURE CHALLENGES

• Port options at Sept-Îles or Pointe-Noire under finalization.

27

CONTENTS






28

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.

29

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.

30

31

THANK YOU

tata steel: venturing into the canadian market...value creation and corporate citizenship csr &...

Documents