ArcelorMittal sells 20 % stake in Canada’s Baffinland Iron Ore Mines to partner Nunavut

ArcelorMittal, the world's largest steelmaker, yesterday sold a 20-per cent stake in Canada's Baffinland Iron Ore Mines to Nunavut, in order to reduce debt.

Financial terms of the deal were not disclosed by either company.

The Luxembourg-based steelmaker reduced its stake to 50 per cent from 70 per cent in Baffinland located in the Canadian Arctic that will cost between $5 billion to $7 billion to develop.

ArcelorMittal and Nunavut, a vehicle formed for the acquisition of Baffinland Iron Ore by the $2-billion US-based private equity firm Energy & Minerals Group, who had fought a bitter four-month bidding war for the ior ore miner in early 2011, will now hold 50 per cent each.

Both companies ended their battle by submitting a revised C$554.9 million ($561.9 million) joint bid, with ArcelorMittal owning 70 per cent of Baffinland and Nunavut the remaining 30 per cent. (See: ArcelorMittal to jointly bid with rival Nunavut for Canadian miner Baffinland)

Baffinland's Mary River iron ore deposit at Baffin Island holds a massive 500-million tonnes of high-grade iron ore deposit, which is more than enough to supply the raw material needed for making steel to all of Europe.