ArcelorMittal Dofasco Clarifies Position on Wabush Mines Sale
03/05/2008 - ArcelorMittal Dofasco expresses ‘strong exception’ to news releases issued by U.S. Steel Canada and Cleveland-Cliffs regarding their desire to withdraw from the sale of their respective interests in the Wabush Mines joint venture.
In a published release issued on Tuesday, ArcelorMittal Dofasco stated that it “takes strong exception” to news releases issued by U.S. Steel Canada Inc. and Cleveland-Cliffs Inc. “concerning their desire to withdraw from the sale of their respective interests in the Wabush Mines joint venture.”
The company noted that U.S. Steel Canada and Cleveland-Cliffs are legally obligated to sell their interests in accordance with the terms of an offer made to Dofasco by U.S. Steel Canada and Cliffs Mining Co. (a subsidiary of Cleveland-Cliffs). The offer had been duly accepted by ArcelorMittal Dofasco.
ArcelorMittal Dofasco said it has advised U.S. Steel Canada and Cleveland-Cliffs that it expects them to fully honor their obligations in order to complete the sale of their interests without delay. The company further stated that it “intends to use whatever legal proceedings it considers appropriate to ensure compliance”.
"We have invested 6 months and considerable resources into the Wabush acquisition," stated Juergen Schachler, President and CEO of ArcelorMittal Dofasco. "We have held productive discussions with the Government of Newfoundland and Labrador as well as employees, labor representatives and community stakeholders. We are committed to this purchase."
According to ArcelorMittal Dofasco, “U.S. Steel and Cleveland-Cliffs' announcement to unilaterally terminate a legally binding agreement was unexpected, and disappointing in face of what had been classified by Cleveland-Cliffs as ‘...a good transaction for all of the parties involved’.”
ArcelorMittal Dofasco said it has advised U.S. Steel and Cleveland-Cliffs that they are obligated to complete the transaction as agreed to in September, and that the company will continue working to that end.
ArcelorMittal is the world's largest steel company with 320,000 employees in 60 countries. ArcelorMittal Dofasco is a leading North American steel producer and supplier of high-quality flat-rolled steels.
