Cargill holds a 50-percent share in the joint venture, North Star BlueScope Steel, which makes hot rolled coil primarily for the automotive and construction industries, according to the Minneapolis Star Tribune newspaper. The mill, located in Ohio, USA, is capable of producing 2 million tons annually.

As part of the cash deal, Australia's BlueScope will assume $40 million of the joint venture’s debt.

According to The Wall Street Journal, BlueScope exercised its right of last refusal under the North Star shareholders’ agreement, matching an offer received by Cargill from a third party.

Cargill was satisfied with North Star BlueScope's performance, but it chose to the sell its interest in the mill to redeploy capital elsewhere in Cargill’s portfolio, the company said in a statement.

Although Cargill is leaving steelmaking, it will remain involved in other aspects of the industry through its Metals Supply Chain business. That business is active in global trading, distribution and processing of steel mill consumables and products, including iron ore, hot rolled steel coils, steel billets and reinforcing bar steel.

Separately, BlueScope said it will keep its flagship Port Kembla works in operation after the New South Wales state government committed to defer AUD60 million of payroll tax payments over the next three years.

The company had threatened to close the plant unless it was able to secure $200 million in cost savings. Its unionized labor force eventually agreed to concessions and job cuts in order to keep the plant afloat.