U.S. Steel Canada, ArcelorMittal to Sell Interests in Wabush Mines Joint Venture
10/12/2009 - U.S. Steel Canada and ArcelorMittal have entered into an agreement with Consolidated Thompson Iron Mines, providing for the purchase by Consolidated of U.S. Steel Canada's 44.6% interest and ArcelorMittal's 28.6% interest in Wabush Mines.
U.S. Steel Canada Inc. and ArcelorMittal have entered into an agreement with Consolidated Thompson Iron Mines Ltd., providing for the purchase by Consolidated of U.S. Steel Canada's 44.6% interest and ArcelorMittal's 28.6% interest in the Wabush Mines Joint Venture.
U.S. Steel Canada did not release terms of the transaction. ArcelorMittal will receive a consideration of USD 34.28 million for the stake.
ArcelorMittal says that its stake in Wabush Mines is no longer a core part of its mining strategy. The mine represented 31 million tons of iron ore reserve and 1.2 million tons of iron ore produced for ArcelorMittal in 2008.
Wabush Mines owns and operates iron ore mining and pellet facilities in Newfoundland and Labrador, and Quebec, Canada.
Completion of the transaction is subject to a right of first refusal held by the third owner of Wabush Mines, Cliffs Natural Resources Inc., and to other customary closing conditions, including regulatory approvals and third-party consents.
U.S. Steel Canada Inc. is a wholly owned subsidiary of United States Steel Corp., headquartered in Pittsburgh, Pa. United States Steel is an integrated steel producer with major production operations in the United States, Canada, and Central Europe and an annual raw steelmaking capability of 31.7 million net tons. The company manufactures a wide range of value-added steel sheet and tubular products for the automotive, appliance, container, industrial machinery, construction, and oil and gas industries.
ArcelorMittal is the world's leading steel company, with operations in more than 60 countries. It is a leader in all major global steel markets, including automotive, construction, household appliances, and packaging, with sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in more than 20 countries spanning four continents, the company covers all of the key steel markets, from emerging to mature. In 2008, ArcelorMittal had revenues of $124.9 billion and crude steel production of 103.3 million tonnes, representing about 10% of world steel output.
