ArcelorMittal disposes of $1.1bn stake in Canadian iron ore unit

STEELMAKER ArcelorMittal said yesterday it would sell a 15 per cent stake in a Canadian mine operator to an Asian consortium led by South Korean POSCO and Taiwan-listed China Steel in a deal worth $1.1bn (£674m).

Through the stake in ArcelorMittal Mines Canada, the consortium will acquire the Labrador Trough iron ore mining and infrastructure assets.

“This joint venture incorporating a long-term off-take agreement is consistent with our strategy to forge strategic relationships with key customers as we build our global mining business,” Peter Kukielski, chief executive of mining at ArcelorMittal, said yesterday.

The deal, expected to complete in the first half of this year, is the latest step from the company to help pay off debt at a time of slowing global steel demand.

Last month, the firm wrote down the value of its European business by $4.3bn as it battled a weak market, while in November it slashed its dividend as it tumbled to a third quarter loss.