Tata Steel has made an additional provision of ₹5,000 crore on account of write-down in the value of its assets, mainly relating to the long products division in the UK.

With the latest provision, the company has impaired the complete asset of the long product division of Tata Steel Europe, it said in a statement on Thursday.

Besides, the impairment also includes a write-down of investments in raw materials projects in Mozambique, Ivory Coast and Taconite in Canada. The economic viability of these projects remains uncertain at the current level of commodity prices, it said. Earlier, the company had undertaken a non-cash charge of ₹1,577 crore in the first quarter of FY-15 towards its investment in the Mozambique coal project.

The overall charges incurred by the company in the financial year 2014-15 would be about ₹6,500 crore in the consolidated financial results.

Tata Steel will announce its financial results on May 20.

The review was undertaken due to the external economic environment and macroeconomic conditions in different countries were it has operations and the underlying demand-supply imbalance facing the global steel industry.

The prospects of Tata Steel assets were also impacted by the significant volatility in iron ore and coal prices in the last one year and long-term forecast of steel and its raw material prices.

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