ArcelorMittal Mines Canada (AMMC) and a consortium led by POSCO and China Steel Corporation (CSC) will enter into a joint venture 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 $1.1 billion 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.

“We are committed to growing ArcelorMittal’s mining business,” said Peter Kukielski, chief executive, mining, 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. The consortium will be an excellent partner as we pursue further expansion at AMMC.”

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.