London: World's largest steel maker ArcelorMittal will sell its 28.6 percent stake in Canada-based Wabush Mines for about USD 34.28 million.
The steel maker would be offloading its minority stake to
Canadian entity Consolidated Thompson Iron Mines and both
firms have entered into a definitive agreement in this regard.
"ArcelorMittal's 28.6 percent stake in Wabush Mines is
being sold to Consolidated Thompson Iron Mines. ArcelorMittal
will receive a consideration of USD 34.28 million for the
stake," the steel behemoth said in a statement on Friday.
L N Mittal-led ArcelorMittal said the stake in Wabush
Mines is no longer a core part of the company's 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.
According to the steel maker, even after selling the
stake in Wabush Mines, the company continues to have
significant mining operations and resources in Canada.
"Canada also remains an important jurisdiction for
ArcelorMittal's future growth strategy in both mining and
steel making," the statement said.
The company's presence in that country includes
ArcelorMittal Mines Canada, earlier known as Quebec Cartier
Mining.
Bureau Report
First Published: Saturday, October 10, 2009, 13:41