TATA group owned TATA Steel has bought 19.9 percent stake in New Millennium Capital, a leading Canadian miner which deals in exploration and development of iron ore properties. 

The company controls 9.1 billion tonnes of NI 43-101 taconite mineral resources in Canada and is listed with TSX Venture Exchange. The deal worth Rs 106 crore was signed between Tata Steel Global Minerals Singapore and New Millennium on Wednesday.

The Managing Director of Tata Steel Ltd, Mr B. Muthuraman said that the company would work with New Millennium on the DSO and LabMag properties and develop a world class business with mutual co-operation in the field of iron ore and properties. The deal would satisfy the raw material needs of the TATA Steel. 

It would be very beneficial for the TATA Steel European operation due to appropriate geographical location of Canada. The company can also acquire an 80% equity interest in the joint venture for DSO project in Newfoundland, Labrador (NL) and Quebec.

TATA steel can also appoint two nominees on the board of publicly owned company, New Millennium. The deal also enables TATA steel to negotiate transactions in the LabMag iron ore project until June 30, 2009.