Tata Steel is all set to decide on an investment plan for its iron ore mining and pellet project in Canada.

Tata Steel is a strategic partner and the biggest stakeholder in the Toronto Stock Exchange-listed New Millennium Iron Corp (NML), which is executing the project.

The financial viability of the project was confirmed by a study. The favourable geological and mining characteristics of the two deposits -- Labmag and KéMag in eastern Canada's sub-Arctic region -- were evidenced in the study's operating cost estimates. The study has suggested that the project has the potential to become a low-cost pellet producer. The project can produce 17 million tpa of two types of pellets and six million tpa of pellet intermediates for export.

The unit financials have been evaluated with capital expenses, excluding certain infrastructure-related capital expenses in the mine, port and ferroduct (of over 600 km to carry the ore concentrate slurry to the pellet unit). These will be owned by third parties.