Nov. 30 (Bloomberg) -- Tata Steel Ltd., India's oldest steelmaker, will study more coal and iron ore acquisitions as well as new partnerships to secure raw material supplies globally after buying Corus Group Plc for $12.9 billion in January.

The Mumbai-based company today signed a A$100 million ($88 million) joint venture agreement with Riversdale Mining Ltd. to take a 35 percent stake in its Mozambique project and buy 40 percent of the operation's coking coal output, the Sydney-based company said today in a statement.

Tata, which buys coking coal from BHP Billiton Ltd. and Rio Tinto Group mines in Australia, faces competition for raw materials as it expands overseas and prices of iron ore and coal increase. The company said last month it was scouting for iron ore and coal mines in Brazil, Australia, Canada and Africa.

``We are looking for more partners to secure supply,'' B. Muthuraman, Tata's managing director, said today in an interview in Sydney. Tata is also looking for iron ore assets around the world, he told a media briefing.

Riversdale rose 49 cents, or 5.2 percent, to A$9.90 on the Australian Stock Exchange, valuing it at A$1.76 billion. Tata gained 2.5 percent, or 20.4 rupees, to 822.5 rupees on the Bombay Stock Exchange.

BHP this month proposed an offer of three of its shares for each Rio share. The proposal is a ``big challenge'' to producers, Lakshmi Mittal, chief executive officer of the world's largest steelmaker ArcelorMittal, said yesterday in Brazil.

Tata is not concerned about a possible takeover, Muthuraman told reporters, adding that it is ``part of the process.''

``There is a consolidation happening throughout the world,'' he said. ``It's something that fits in, is logical, rational and natural and the same thing is happening in the world steel industry.''

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net; Robert Fenner in Sydney rfenner@bloomberg.net

Last Updated: November 30, 2007 03:58 EST