Buy Tata Steel: ICICI Securities
ICICI Securities has maintianed buy rating on Tata Steel, in its December 13, 2007 report. “Tata Steel recently announced its joint venture with SODEMI to develop Mt. Nimba mines in the Ivory Coast. Mt. Nimba deposits, amongst the largest in West Africa, are spread across three countries Liberia, Guinea and the Ivory Coast. Tata Steel has 75% stake in the project, with the remaining held by Ivory Coast’s state-owned firm SODEMI; Tata Steel’s capex for developing the mines is USD 1.5 billion. Total mine reserves are between 750mnte and 1bnte and we expect production to commence within two years. Also, the mines are located just 250-300km from the coast, thereby ensuring low output cost,” according to ICICI Sec report.
