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ArcelorMittal buys out Canada’s Wabush iron ore mine

ArcelorMittal buys out Canada’s Wabush iron ore mine
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First Published: Wed, Sep 05 2007. 05 26 PM IST
Updated: Wed, Sep 05 2007. 05 26 PM IST
AP
Brussels: ArcelorMittal, the world’s largest steel maker, said on 5 September it would exercise its right to buy out the other owners of Canada’s Wabush Mines, jilting an earlier deal they struck with Canadian miner Consolidated Thompson Iron Mines Ltd.
ArcelorMittal owns 28.6% of Wabush, acquired when it bought Canadian steel producer Dofasco Inc last year. The mine extracts iron ore in northeastern Canada.
“This will bring ArcelorMittal closer to its stated objective of 75% iron ore self-sufficiency,” said ArcelorMittal’s head of mining, Malay Mukherjee.
The Luxembourg-based steel maker said it will pay around $67 million in cash and take on certain liabilities to buy out Wabush’s other owners — Stelco’s 44.6% and Cleveland Cliffs’ 26.8% stake.
The two had earlier agreed in June to sell their stakes to Thompson for $64.3 million plus 3 million shares.
But ArcelorMittal, as a co-owner, had a prior right to buy them out, which it has now exercised on similar terms as those agreed with Thompson.
ArcelorMittal is still being formed as Mittal Steel Co. NV takes over rival Arcelor SA although the two are already operating as one company that controls some 10% of world steel output.
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First Published: Wed, Sep 05 2007. 05 26 PM IST
More Topics: ArcelorMittal | iron ore | mines | Canada | Wabush |