Tata International (TIL), which till recently was mainly a trading firm helping the Tata group firms in exports, is slowly gaining traction in the mining sector through one of its wholly-owned subsidiaries, Tata Africa Holdings.
In the last one year, the subsidiary made its first couple of mining acquisitions ? a chrome mine in Madagascar and a coal mine in Mozambique.
At a time when companies around the world are trying to become self-sufficient in mineral resources, TIL?s foray into the global mining arena is good news for Tata group companies ? Tata Steel and Tata Power ? which have to buy minerals from the marketplace as they are not self-sufficient.
?The mines business is a new one for Tata International. Today, apart from thermal coal, we are also trading in tin and zinc; slowly we are developing the mineral and metals trading business,? B Muthuraman, chairman, Tata International, told FE. Asked what it would do with the coal from the Mozambique mine, Muthuraman said the company would sell it to companies, including Tata Power Tata Steel.
When asked how Tata group companies would benefit from this, especially when they would have to buy chrome/coal originating from TIL?s Madagascar or Mozambique mines at market price, Muthuraman said, ?They would have regular and consistent supply and guaranteed purity all the time.?
As for plans to utilise chrome ore from the Madagascar mine, Muthuraman said that the company has just acquired the mine and that the firm may set up a ferrochrome plant in Madagascar. ?But all of that would take another two-three years to develop as the reserves are spread over a large area of around 500 sq km.?
Spread over 15-20 sq km, the coal mine in Mozambique?s Tete province was acquired by Tata around a year ago. The company has so far spent about $50 million (R278 crore) on it. ?We are exploring now and only after we are satisfied will the size of the reserves be known,? said Muthuraman.