ArcelorMittal, might offload its Canadian iron ore operations in a bid to reduce its debt by relinquishing its non-core businesses.
The steelmaker’s 420 km railway, which services the Mont-Wright iron ore mine in Quebec that produces 24mn mt of iron ore annually, could be up for sale soon according to media reports. The company is contemplating whether or not it will sell its entire ArcelorMittal Infrastructure Canada business, or simply part of it in a sale that could clear about $2.5bn in debt.
Seven years ago, the company sold a 15pc stake of its Canadian mine to a consortium for $1.1bn. The Canadian operations includes 30 locomotives and 2,900 iron ore carriages that travel to the Port-Cartier-based terminal that sits on the Saint Lawrence River.
The steel industry had been reeling before the COVID-19 crisis hit, and the pandemic has doubtless exacerbated those problems. If the company chooses to offload its Canadian mining operations, it could bring its debt down to $7bn.