ArcelorMittal is reportedly considering the sale of some of its iron ore operations in an effort to cut debt by divesting non-core businesses, according to media reports.
The company is reportedly reviewing its iron ore assets in Canada, Brazil and Liberia, with options including selling partial or full stakes, reports said, adding that the Canadian business alone could be valued at about $2 billion. The company’s Canadian operations produce over 26 million tons of iron ore per year, while company’s operations in Brazil have an annual iron ore production capacity of 7.1 million tons.
ArcelorMittal has not initiated a formal sale process, but it said in August that it has the “potential to unlock $2 billion from its portfolio in the next two years,” which news reports said signaled plans to sell non-core units.
ArcelorMittal produced 58.5 million metric of iron ore last year, and its iron ore and metallurgical coal mining operations accounted for approximately 35 percent of EBITDA in Q2.