Tata Steel, world's seventh largest steel maker, has initiated steps to fulfil the iron ore requirement of its European facilities. Tata Steel Minerals Canada (TSMC), a JV between New Millennium Iron Corporation (NML) and Tata Steel, on 8 June 2011 signed an agreement for development of direct shipping iron ore (DSO) project Northern Quebec. TSMC has signed a 'life of mine' agreement for development of NML's DSO project located in Western Labrador and North Eastern Quebec which will provide for a long-term iron ore security to Corus.

In an interesting development, Tata Steel has reportedly decided to divest its 26.3 per cent equity in Australia's Riversdale Mining to finance the expansion of its steel making capacity in Jamshedpur (Jharkhand) and Kalinganagar (Orissa), as well as mining operations and capex plan of its European operations. Rio Tinto which holds a 73.20 per cent stake in Riversdale is likely to delist it.

Indian companies/parties have extended financial commitments totalling $43.9 billion during FY11, showing more than doubling over $17.6 billion average in the preceding two years. While equity investment formed 21 per cent and loans 17 per cent, as much as 62 per cent was in the form of guarantees. Equity investment formed about a fourth, whilst loans and guarantees formed three-fourths share in the commitments in the last two years, which is a reversal from 58 per cent in equity and 42 per cent in loans/guarantees in the previous two years.