World's sixth largest steel producer Tata Steel said it will begin production at Sedibang mine in South Africa from next year. Tata Steel managing director B Muthuraman informed this to the media. Muthuraman said that, a small iron ore mine at Sedibang would begin production next year. Tata Steel would get two million tonnes of iron ore per annum from this mine, he added.

 

Muthuraman said also told that, the company is currently focusing in South Africa and Canada for iron ore. It is also looking at coal blocks in Mozambique, he said. The Sedibang mine has a reserve of 50 million tonnes of iron ore. However, the Canadian iron ore mines are likely to have a reserve of 100 million tonne. Muthuraman further added that, The company's strategy is to focus at small mines where the investment would be low and large mines where no investment would be needed in next few years.

 

Tata Steel has 35% stake in the coal block in Mozambique. The coal block is under exploratory stage and the reserve is pegged at 2.1 billion tonne. Meanwhile, Tata Steel MD said the company is in discussion with Tata Motors to supply flat steel products for the world's cheapest car 'Nano'.