Tata Steel, the world's sixth largest maker of the alloy, will invest around Rs 600 crore (Rs 6 billion) over the next three years for developing limestone deposits in Oman, a company official said on Thursday.
The venture would help in getting better quality raw material that would be utilised at its Corus plant in UK and also in India, Tata Steel Managing Director B Muthuraman told reporters in Kolkata.
The project would also help in cost saving, he said.
Tata Steel on Wednesday entered into a joint venture pact with Oman-based Al Bahja Group for development of limestone deposits in Oman. The Indian firm would hold 70 per cent stake in Al Rimal Mining LLC, which would execute the project of developing and operating the Uyun mine.
Limestone is a key input for making corrugated steel. Tata Steel would hold the stake in the Oman-based firm through its subsidiary TS Global Minerals Holdings Pte Ltd. The initial phase would involve exploration and detailed feasibility studies and the project envisages mining of limestone in the Uyun region, which lies in Salalah province.