Luxembourg-based global steelmaker ArcelorMittal has announced that its wholly owned subsidiary ArcelorMittal Mines Canada (AMMC) and a consortium led by South Korean steel producer POSCO and Taiwan's China Steel Corporation (CSC) will enter into a joint venture partnership that will own ArcelorMittal's Labrador Trough iron ore mining and infrastructure assets.
Accordingly, the consortium will acquire a 15 percent interest in the joint venture for a total consideration of $1.1 billion in cash, with AMMC and its affiliates retaining an 85 percent interest. Additionally, POSCO and CSC will enter into long-term iron ore off-take agreements proportionate to their joint venture interests.
The transaction is subject to various closing conditions, including regulatory clearance by the Taiwanese government, and is expected to close in two installments in the first and second quarters of 2013.