On January 27, Luxembourg-based steelmaking goliath ArcelorMittal and Canada-based Nunavut Iron Ore Acquisition Inc. (Nunavut Iron), a subsidiary of US-based Iron Ore Holdings LP, and Canadian miner Baffinland Iron Mines Corporation (Baffinland), which is 61 percent owned by Arcelor and Nunavut together, have announced changes to Baffinland's board of directors.
Effective immediately, the Baffinland board of directors has accepted the resignations of Richard D. McCloskey, Grant Edey, John W. Lydall, Russell Cranswick and Gordon Watts. The Baffinland board of directors has been expanded to eleven directors and the open board seats have been filled by Aditya Mittal, Sudhir Maheshwari, Phil Du Toit, Peter Kukielski, Carole Whittall, André La Flèche, Bruce Walter and Jowdat Waheed.
Aditya Mittal has been appointed chairperson of the Baffinland board of directors and Phil Du Toit has been named president and chief executive officer of Baffinland. Daniella Dimitrov, Gary Fietz and Ronald Simkus will continue as directors on the board of Baffinland.
Deal still on the table
As SteelOrbis previously reported, ArcelorMittal and Nunavut Iron now own 61 percent of Canadian miner Baffinland Iron Mines Corporation (Baffinland) through their C$590 million ($591 million) joint acquisition offer.
The offer, which seeks all shares of the company for C$1.50 (US$1.51) in cash per common share, has been extended until February 4. Under the joint offer, ArcelorMittal and Nunavut Iron would own 70 percent and and 30 percent of Baffinland respectively.
The companies decided to cooperate on January 14, following various rival bids to acquire Baffinland.
C$4 billion project
Baffinland's Mary River project has proven reserves of about 365 million metric tons of ore, grading an average of 65 percent iron, and about 500 million mt of ore resources. For some months now Baffinland has been looking for partners for the C$4 billion project, which is expected to produce 18 million mt of iron ore per year.
ArcelorMittal has already received the necessary approvals for acquisition from local authorities, also valid for the joint offer.
Baffinland said on January 21 it had submitted a draft environmental impact study for the Mary River project and said it expects to have full permission in place by 2013.