Luxembourg-based global steelmaker
ArcelorMittal has announced that it has completed the first part of its sale of a 15 percent share in its wholly-owned subsidiary
ArcelorMittal Mines
Canada (AMMC) to a consortium led by the South Korean steel producer POSCO and Taiwan's China Steel Corporation (CSC).
The consortium has acquired an 11.05 percent interest in
ArcelorMittal's Labrador Trough
iron ore mining and infrastructure assets in Quebec,
Canada for a total consideration of $810 million in cash, with
ArcelorMittal's wholly-owned subsidiary
ArcelorMittal Mines
Canada retaining an 88.95 percent interest.
The second part of the investment by the consortium, which will increase the consortium's interest in the joint venture to 15 percent, remains subject to various conditions and is expected to close in the second quarter of 2013.
Additionally, POSCO and CSC have also entered into long-term
iron ore off-take agreements proportionate to their joint venture interests.