ArcelorMittal to sell stake in Canadian firm for $34 mn

World's largest steel maker ArcelorMittal will sell its 28.6 per cent stake in Canada- based Wabush Mines for about $34.28 million.

The steel maker would be offloading its minority stake to Canadian entity Consolidated Thompson Iron Mines and both firms have entered into a definitive agreement in this regard.

"ArcelorMittal's 28.6 per cent stake in Wabush Mines is being sold to Consolidated Thompson Iron Mines. ArcelorMittal will receive a consideration of $34.28 million for the stake," the steel behemoth said in a statement on Friday.

L N Mittal-led ArcelorMittal said the stake in Wabush Mines is no longer a core part of the company's mining strategy.

The mine represented 31 million tons of iron ore reserve and 1.2 million tons of iron ore produced for ArcelorMittal in 2008.

According to the steel maker, even after selling the stake in Wabush Mines, the company continues to have significant mining operations and resources in Canada.

"Canada also remains an important jurisdiction for ArcelorMittal's future growth strategy in both mining and steel making," the statement said.

The company's presence in that country includes ArcelorMittal Mines Canada, earlier known as Quebec Cartier Mining.