|China Steel Corporation (CSC) announces today that it has entered into an agreement pursuant to which ArcelorMittal’s wholly owned subsidiary ArcelorMittal Mines Canada (AMMC) and a consortium led by POSCO and CSC will enter into a joint venture partnership that will own ArcelorMittal’s Labrador Trough iron ore mining and infrastructure assets. The consortium will acquire a 15% interest in the joint venture for total consideration of $1,100 million in cash, with AMMC and its affiliates retaining an 85% interest.
As part of the transaction, POSCO and CSC will enter into long-term iron ore off-take agreements proportionate to their joint venture interests.
The consortium includes POSCO, CSC, and certain financial investors.
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.