NEW YORK ArcelorMittal SA said it has received the first installment from its sale of a 15-percent stake in its Labrador Trough iron ore assets in Quebec.
A consortium led by Pohang, South Korea-based Posco Ltd. and Kaohsiung, Taiwan-based China Steel Corp. now owns an 11.05-percent share in the iron ore joint venture in exchange for $810 million in cash. Luxembourg-based ArcelorMittals wholly owned subsidiary ArcelorMittal Mines Canada Inc., Montreal, retains an 88.95-percent interest in the project.
The joint venture has also entered into long-term iron ore offtake agreements with Posco and China Steel as part of its strategy to build strategic relationships with key customers.
The companies struck the original $1.1-billion deal in January (amm.com, Jan. 2). The second stage of investment, which will increase the consortiums stake to 15 percent, remains subject to various conditions but is expected to take place in the second quarter, ArcelorMittal said March 15.
A version of this article was first published by AMM sister publication Steel First.