AcelorMittal, a multinational steel manufacturing corporation recently declared that it would cut its investment in the Canadian Arctic iron ore mine. As agreed, Nunuvat Iron Core will increase its share in Biff Inland Corporation from 30 per cent to 50 per cent.However, Nunavut Iron Ore will increase its share of funding for development of Baffin land’s Mary River Iron Ore Project.
The largest steel producing company in the world, based in Luxemburg and London is selling about 20 per cent of its share in Baffin land Iron Mines Corp. The Baffin Land Corporation controls the Mary River iron ore project and Nunavut River iron ore Inc. unit Iron Ore Holdings Plate Iron ore Holdings LP already has 30 per cent stake in it.
AcelorMittal spokesman said though the mine is very rich but the project as a whole is very risky because it seeks to give ever increasing mining costs. Nonetheless, it tends to overcome debt issues and reduce exposure to the unattractive commodity prices.
Tom Paddon, President & Chief Executive Officer of Baffin land, said, “This has been an excellent month for the Mary River Iron Ore Project. Two important milestones have been achieved. Last week, Minister Duncan announced federal approval of the Mary River Iron Ore Project. Now, with these arrangements, we have secured additional shareholder support for the project."