Arcelor Mittal set to buy mine in Canada for $433 mn | business | Hindustan Times
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Arcelor Mittal set to buy mine in Canada for $433 mn

business Updated: Dec 16, 2010 22:38 IST

Unless a rival bidder emerges — possibly from China — by next Monday, ArcelorMittal is set to take over Canada’s Baffinland Iron Mines for $433 million.

ArcelorMittal has already received a ‘no action’ letter from Canada’s Commissioner of Competition for its bid, clearing the way for its takeover of Baffinland until a rival bid emerges by December 20.

The waives the need for a review of the deal by Industry Canada, the industry ministry.

Baffinland Iron Mines is a mining company focused on mineral exploration and development of its fully owned Mary River iron-ore deposits on Baffin Island in the union territory of Nunavut — almost touching Arctic regions.

ArcelorMittal is eying the company’s prized Mary River iron-ore deposits to secure future supply for its plants.

A 2008 feasibility study said Mary River’s high-grade deposits can produce 18 million tonnes of iron ore a year for up to two decades. Recent discoveries hint even bigger deposits.

Baffinland stock shot up 9.% on Wednesday on expectation of its takeover by the world's biggest steel company. The stock closed $1.24 on the Toronto Stock Exchange.