Asian Consortium Takes 15% Stake in ArcelorMittal Mines Canada
As part of the transaction, POSCO and China Steel will enter into long-term iron ore off-take agreements proportionate to their joint venture interests.
The transaction is subject to various closing conditions, including regulatory clearance by the Taiwanese government, and is expected to close in two installments in the first and second quarters of 2013.
Peter Kukielski, chief executive-mining at ArcelorMittal and a member of the group management board, said, “We are commit-ted to growing ArcelorMittal’s mining busi-ness. This joint venture incorporating a long-term off-take agreement is consistent with our strategy to forge strategic relation-ships with key customers as we build our global mining business. The consortium will be an excellent partner as we pursue further expansion at ArcelorMittal Mines Canada.”
ArcelorMittal Mines Canada operates two large open-pit iron ore mines, Mont-Wright and Fire Lake. The Mont-Wright site is linked by company rail to its Port-Cartier industrial complex, which includes a pellet plant, storage areas, and port facilities for shipping. The company pro-duces about 15 million mt/y of iron ore concentrate and more than 9 million mt/y of iron oxide pellets.