Tata Steel, Australia's Northern Iron sign iron ore deal

MUMBAI: Australia's Northern Iron has signed an agreement with the Tata Steel group, under which the Australian company will supply 6 million tonnes of iron ore concentrate over a five-year period. The iron ore concentrate will come from Northern Iron's Sydvaranger iron project in Norway and will be supplied to Corus.

Pricing for the concentrate will be based on Brazilian iron ore company Vale's benchmark for similar products delivered into Europe.

Tata Steel has been scouting for raw material resources that will feed its international operations including Corus. It has taken stakes in African and Austrlian raw material projects as part of its plans to meet Corus' demands.

Tata Steel's India operations are self-equipped to meet its iron ore and coal requirements.

Shares of Tata Steel were up 2.2% at Rs 234.65 in intra day trade on the BSE.