Tata Steel and government of Quebec have signed an in-principle agreement for developing iron ore deposits in the Canadian province, this move will help the company in reducing its raw material costs.

Tata Steel said in a regulatory filing that “Premier of Quebec Philippe Couillard, accompanied by the Minister of Economy, Innovation and Exports Jacques Daoust, announced the signing of an Agreement-in-Principle between the Government of Quebec and TS Global Minerals Holdings.”

T V Narendra, Tata Steel (India & South East Asia) Managing Director has signed the agreement on behalf of the firm on the sidelines of the World Economic Forum in Davos.

According to the filing “This undertaking should lead to a decision, before March 31, 2016, with respect to a government participation in the DSO Project in Schefferville area, in the North Shore region. “Parties also agreed to cooperate in creating favorable conditions in the transit activities of iron ore from Arnaud Junction to the multi-user dock of the Port of Sept-Iles.”

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