BL reported that Tata Steel is planning to begin production from one of its iron ore projects in Canada by year end, a move that will boost raw material supplies to its European operations.

As per the plan, production from Direct Shipping Ore Project, in which Tata Steel holds 80% stake is expected to begin during the October to December quarter. A target of 1 million tonnes of iron ore has been kept for the current fiscal.

Tata Steel said the production will be ramped up to over 3 MT in 2014 to 2015. Trial production was successful in 2012 with initial mining and dry processing of 63% iron grade ore. Plan for 1 MT of iron ore in FY 2014 to be ramped up to over 3 MT in FY 2015. It has obtained various permits, approvals and environmental clearances.

The DSO Project is run by Tata Steel Minerals Canada Limited and contains 64.1 MT of proven and probable reserves having an average grade of 58.8% iron. It also has about 60 MT indicated, inferred and historical resources of various grades of iron.

In a recent update, New Millennium Iron Corporation the 20% partner in DSO Project said that construction of the processing complex and ancillary facilities are expected to be completed during the October to December quarter of 2013 and then first production will happen.

Iron ore from the project will be shipped to Tata Steel's European operations as pellets and sinter fines. Tata Steel had already made a commitment to take 100% of the DSO project's iron ore products for the life of the mining operations.

Besides the DSO project, Tata Steel also has 26.3% stake in Canadian firm New Millennium Iron Corporation and 51% stake in Howse iron ore deposit of Labrador Iron Mines.