Written by: Sandy Williams
ArcelorMittal will sell a 15 percent interest in ArcelorMittal Mines Canada to a consortium led by POSCO and China Steel Corporation for $1.1 billion. The deal will be completed over the first and second quarters of 2013.
“We are committed to growing ArcelorMittal’s mining business,” said Peter Kukielski, Chief Executive of Mining at ArcelorMittal. “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. “
ArcelorMittal had a difficult year in 2012 with operating losses and controversial mill closings. Net debt for the company was 23 billion at the end of the third quarter 2012 and it has disposed of $4.2 billion in assets since September 2011 as part of a debt reduction strategy. Moody’s and Standard & Poor dropped the steel giant’s credit rating to junk status last year. In December, ArcelorMittal announced it will take a write down of $4.3 billion in its European businesses in the form of a non-cash impairment charge for the fourth quarter of 2012.
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