Tata Steel JV with Al Bahja Group

Tata Steel Ltd has informed that the Company and Al Bahja Group, a leading business house of Oman, on January 16, 2008 have entered into a Joint Venture Agreement, for the development of the Uyun Limestone deposits at Salalah in the Sultanate of Oman.

In this regard the Company has issued the following Press Release:

"Tata Steel Ltd, and the members of the Al Bahja Group, a leading business house of Oman have entered into a Joint Venture Agreement (JVA) for the development of the Uyun Limestone deposits at Salalah in the Sultanate of Oman.

The JV Agreement was signed by Mr. Ajit Hamlai, Chairman, Al Bhaja Group and Mr. B Muthuraman, Managing Director, Tata Steel in the presence of H E The Ambassador of India to the Sultanate of Oman, Mr. Anil Wadhwa, Mr. A D Baijal, Group Director (Global Minerals), Tata Steel, and other officials of the Al Bahja Group and Tata Steel. Tata Steel will be holding 70% stake in the existing Company named AL Rimal Mining LLC through its subsidiary, TS Global Minerals Holdings Pte Ltd. Al Rimal Mining LLC will execute the project of developing and operating the Uyun Mine.

Mr. B Muthuraman, Managing Director, Tata Steel said, "Tata Steel is pleased to have signed this Agreement. Tata Steel has nearly 100 years of extensive experience of exploration, modelling, designing and operation of both underground and open cast mines. Tata Steel will continue with its policy of introducing best practices for mining, as well as for management of the environment in the development of the Uyun Limestone Mine in Oman. We value our partnership with the Al Bahja Group, and we are sure that this partnership will play a significant role in the mineral development of the Sultanate of Oman. These investments in mining are the foundations towards achieving Tata Steel's vision of becoming a global benchmark in Value Creation, Corporate Social Responsibility, Environmental Protection and Safety through passionate, talented and motivated employees".

The initial phase will involve exploration and detailed feasibility studies. The project envisages mining of limestone in the Uyun region which lies in the Salalah province of Oman and has large deposits of limestone."

Tata Steel - SAIL & Tata Steel form JV for coal mining in India

Tata Steel Ltd has informed that the Company has signed a JV Agreement with the Steel Authority of India (SAIL), for coal mining activities in India.

In this regard the Company has issued the following Press Release:

"Steel Authority of India Ltd (SAIL) and Tata Steel Ltd (Tata Steel) signed an agreement at New Delhi on January 03, 2008 to establish a 50:50 joint venture Company (JVC) for coal mining in India. The joint venture agreement was signed by Mr. S K Roongta, Chairman, SAIL, and Mr. B Muthuraman, Managing Director, Tata Steel in the presence of other senior executives from both Companies.

The JVC will identify, acquire and develop coal blocks in India. Four suitable medium coking coal blocks in the State of Jharkhand with reserves of around 600 million tonnes are under evaluation for this purpose by a joint working group of SAIL and Tata Steel. On allotment of the blocks, the JVC will develop and carry out mining operations for the captive use by SAIL and Tata Steel. Both the Companies are expanding their steel making capacities and require secure sources of key raw material inputs like coking coal.

At the signing ceremony, Mr. Roongta said: "As India's steel industry enters a high and sustainable growth phase, raw material availability has assumed critical importance. In order to ensure security of coking coal supplies, it is imperative to augment indigenous coking coal availability. With both SAIL and Tata Steel having distinct strengths in coal mining, this JVC will generate synergy to ensure security of coking coal supplies for both partners."

On his part, Mr. Muthuraman stated: "India has very limited reserves of hard and semi soft coking coal. With the Indian steel industry poised for a robust growth, it is imperative for us to utilise this scarce resource in the best possible manner. Both SAIL and Tata Steel have unique strengths and capabilities and we see a strong case to synergise these complementary strengths through this joint venture."

Tata Steel signs JV with Riversdale Mining for Mozambique Coal Project

Tata Steel Ltd has informed that Riversdale Mining Ltd (ASX: RIV and "Riversdale") and the Company have signed an agreement to establish a special purpose joint venture vehicle ("JV") to develop a hard coking and thermal coal project at key coal exploration tenements held by Riversdale in Mozambique.

Under the terms of the agreement, Tata will pay AUD100 million (approximately 88.2 million USD) to acquire a 35% Project Interest. For this consideration, Tata secures a key position in the JV formed to develop the Mozambique Coal Project, as well as a 40% share of the off-take for coking coal.

Tata will also have the option to participate above this level of tonnage, and may participate with Riversdale in future opportunities on Riversdale's surrounding tenements.

The JV comprises two licences (the Benga and Tete licences) and covers an area of 24,960 hectares (approximately 96.7 square miles). Riversdale Mining holds a total acreage of over 290,000 hectares (1,120 square miles) in Mozambique.

Riversdale Mining had recently announced a major coal resource in the Benga Licence. Based on the drilling results undertaken by Riversdale, the total Resource is estimated at 1.225 billion tonnes categorized as Inferred Resources and is in accordance with the JORC Code 2004. Of this, a total of 720 million tonnes is considered to have the potential to be extracted by open-cut methods.

The coking coal derived from this project will be supplied to the Tata Steel Group's facilities in Europe, Asia and elsewhere.

Mozambique is fast-becoming a region of global significance for the coal sector. In addition to Riversdale and Tata Steel's involvement, one of the world's largest mining groups, Companhia Vale do Rio Doce ("CVRD") has also invested significantly in plans to advance a massive coal project next to Riversdale's tenements in Moatize.

The Managing Director of the Company, Mr. B Muthuraman said, "Tata Steel is very pleased to have signed this agreement. Tata Steel has vast experience of coal mining spanning over several decades and will be contributing technical expertise to the Joint Venture". Mr Muthuraman further stated that this investment is a significant step in Tata Steel's initiatives for raw material security. It gives Tata Steel an opportunity to participate in the development of the region as a coal resource for its global operations. This will enhance Tata Steel's long term competitiveness. Mr. Muthuraman further added that it is Tata philosophy to participate and be a part of a country's development process and Tata Steel through its well known and well acknowledged social initiatives will a positive make a positive impact on improving the quality of life of the people of Mozambique.

Tata Steel - Organisation Structure of Tata Steel Group

- Tata Steel Group has announced a new organization structure effective from January 01, 2008 as follows:

Tata Steel Group comprises of two entities, namely, Tata Steel (including Tata Steel Thailand and NatSteel Asia) and Corus Group Ltd. In order to realise this ambition, a new organisation is announced on November 28, 2007, which is effective from January 01, 2008.

* The Chairman of Tata Steel, Mr. Ratan Tata will continue to chair the Strategy and
Integration Committee. Mr. Jim Leng, Mr. B Muthuraman, Mr. Philippe Varin, Dr. Tridibesh Mukherjee, Mr. Rauke Henstra, Mr. Hemant Nerurkar, Mr. Koushik Chatterjee and Mr. Jean-Sebastien Jacques are members of this Committee.

* A Group Centre is created for functions that are to be performed with a common approach across the Tata Steel Group. These functions are Technology & Integration, Finance, Strategy, Corporate Relations & Communications and Global Minerals. The executives responsible for these functions will report to the MD of Tata Steel and the CEO of Corus:

- Dr. Tridibesh Mukherjee is appointed as Group Director, Technology & Integration

- Mr. Koushik Chatterjee is appointed as Group Chief Financial Officer

- Mr. Jean-Sebastien Jacques is appointed as Group Director, Strategy

- Mr. Manzer Hussain is appointed as Group Director, Communications

- Mr. Arun D Baijal is appointed as Group Director Global Minerals

* Both Tata Steel and Corus entities will have Executive Committees chaired by the MD, Mr. B Muthuraman and the CEO, Mr. Philippe Varin respectively.

* A Joint Executive Committee for Tata Steel Group will meet quarterly to review overall performance against the Group ambition. This committee will be co-chaired by the MD of Tata Steel and the CEO of Corus.

Tata Steel Q2 Results

Tata Steel Ltd has announced the following Audited results for the quarter ended September 30, 2007:

The Company has posted a net profit of Rs 11908.30 million for the quarter ended September 30, 2007 as compared to Rs 11014.90 million for the quarter ended September 30, 2006. Total Income has increased from Rs 43795.10 million for the quarter ended September 30, 2006 to Rs 48794.10 million for the quarter ended September 30, 2007.

Siemens Ltd bags orders

Siemens Ltd has announced that Siemens Ltd together with Siemens AG, Germany has bagged Rs 3,300 million (Rs 330 crore) from Tata Steel for providing the Power Distribution Network solutions for their Greenfield Steel plant at Kalinganagar, Orissa.

Siemens' Power Transmission and Distribution (PTD) division has bagged a significant order from Tata Steel to provide the Power Distribution solutions for their Greenfield plant in Orissa. Tata Steel, the world's sixth largest steel producer in terms of crude steel production, with geographic footprints in India, South East Asia, UK and Europe is setting up a Greenfield 6MTPA Integrated steel plant at Kalinganager, Orissa. The scope of work for his new order will include the supply of latest High Voltage and Medium Voltage Gas Insulated Switchgear, MV Switchboards, Controls and Protection Panels, Substation Control and Automation systems and Energy Management Systems. The project is scheduled to be commissioned by end of 2009.

Mr. J Schubert, Managing Directors of Siemens Ltd. stated, "We are very happy to receive this prestigious order from Tata Steel. Their confidence in our capability to deliver high quality systems and solutions has resulted in this partnership. Over the years we have consolidated our experience in handling projects in the iron and steel segment in India as well as worldwide. We therefore, understand the complexities of the Industry and are able to provide top-class eco-friendly solutions to our customers."

Siemens' Power Transmission and Distribution Division in India provides products, systems and solutions in the area of Medium Voltage and High Voltage Switchgear, High Voltage Substations upto 800 kV, Protection and Substation Automation System and Control & Energy Management Systems.

Tata Steel

Tata Steel Ltd has informed that the Board had earlier approved the issue of shares on a Right basis to the existing shareholders of the Company through two simultaneous but unlinked issues as under:

1. Equity Shares in the ratio of one Equity Share for every five Equity Shares held at a price of Rs 300 per share (i.e. face value of Rs 10 each and a premium of Rs 290 per share), raising an amount of Rs 3,654 crores; and

2. 2% Cumulative Convertible Preference Shares (CCPS) of Rs 100 each, compulsorily convertible into Equity Shares of Rs 10 each, with an indicative conversion price in the range of Rs 500 to Rs 600 per Equity Share (on an ex- Rights basis), as may be decided by the Board or the Committee thereof, to enable the Company to raise a total amount of upto Rs 6,000 crores.

The Committee of Directors at its meeting held on October 05, 2007 has approved as under:

a) Size of CCPS to be offered on Rights basis:

The Company would issue CCPS of Rs 5,481 crores in the ratio of 9:10 to the existing equity shareholders.

b. Conversion price of CCPS into Equity Share:

The six CCPS of the face value of Rs 100 each will be compulsorily and automatically converted into one Equity Share fully paid up of Rs 10 each at a premium of Rs 590.

c. Time of conversion:

The CCPS will be compulsorily and automatically converted into Equity Share fully paid up on September 01, 2009 without any application or any further act on the part of the CCPS holders. There shall be no redemption of the CCPS. On conversion CCPS into Equity Shares, the Equity Share Capital would stand increased to 82.21 crores shares of Rs 10 each.

CLSA - Tata Steel

CLSA has a OUTPERFORM on Tata Steel

Steel prices are moving up

Expect them to move up even further

Indian Steel companies have hiked prices from $10-20/ton

12 Month target price of Rs 835

Kotak Institutional - Tata Steel

Kotak Institutional assumes that all operating EBITDA announced for 1QFY08 is operating and recurring in nature.

They raise the Corus Group's EBITDA to £1.3 bn (from £1.1 bn earlier), which leads to a revision in target price to Rs670/ share (from Rs600 earlier).

They continue to rate the stock as In-Line.

KR Choksey - Tata Steel

KR Choksey recommends a BUY on Tata Steel - they feel its a market performer

Support at Rs. 675

Corus earnings were positive surprise

Motilal Oswal - Tata Steel

Motilal Oswal recommends BUY on Tata Steel with a 1 year price target of Rs 934

Strong demand from China, strong earnings of Corus are factors for the BUY call

Motilal Oswal - Tata Steel

Motilal Oswal has recommended a BUY on Tata Steel and upgraded the target price from 600 to 680

SSKI - Tata Steel

SSKI recommends that the current market price, Tata Steel is trading at 7.3x FY08E earnings, a discount to its global peers. They maintain their OUTPERFORMER rating on the stock with a price target of Rs729/share