Tata Steel has received environmental clearance for its 1.2 lakh tpa greenfield ferrochrome project at a new site Richards Bay, South Africa. The local government has cleared the project four years after Tata Steel first announced its plans to set up the smelter.

The project location, it may be recalled was changed in March 2005, following opposition from local companies. 

The project is estimated to cost Rs.250-300 crore and plans to increase the capacity to 2.4 lakh tpa in the second phase. The project is expected to take at least 16-18 months to complete from the date of commencement of construction.

The project was first envisaged to be built in Australia, but was later shifted to South Africa. The main reason for this was better availability of chrome ore and cheaper power in South Africa, which has the largest deposits of the metal in the world.

Also See:

Tisco to change location of S Africa unit (22-Mar-05)

Addendum as on 20 April 2006

Tata Steel, for setting up the proposed ferrochrome project is teaming up with Tata Group's holding companies in South Africa, Tata Africa in 90:10 ratio.

Out of the total cost project, over 50 per cent of the funding will be met through equity and shareholders loan and remaining will be raised from overseas financial institutions.

Work on Tata Steel's is likely to commence by May 2006 with completion scheduled by end-2007. The company has also plans to double the units capacity by 2009.

Original news date: 21 March 2006