HAMILTON, ON, March 4 /CNW/ - ArcelorMittal Dofasco takes strong
exception to the news releases issued today by U.S. Steel Canada Inc. and
Cleveland-Cliffs Inc. concerning their desire to withdraw from the sale of
their respective interests in the Wabush Mines joint venture.
U.S. Steel Canada and Cleveland-Cliffs are legally obligated to sell
their interests in accordance with the terms of an offer made by each of U.S.
Steel Canada and Cliffs Mining Company (a subsidiary of Cleveland-Cliffs) to
Dofasco which was duly accepted by ArcelorMittal Dofasco.
ArcelorMittal Dofasco has advised U.S. Steel Canada and Cleveland-Cliffs
that it expects them to fully honour their obligations in order to complete
the sale of their interests without delay. ArcelorMittal Dofasco intends to
use whatever legal proceedings it considers appropriate to ensure compliance.
Juergen Schachler, President and CEO of ArcelorMittal Dofasco stated: "We
have invested 6 months and considerable resources into the Wabush
acquisition." Schachler continued "We have held productive discussions with
the Government of Newfoundland and Labrador as well as employees, labour
representatives and community stakeholders. We are committed to this
U.S. Steel and Cleveland-Cliffs' announcement to unilaterally terminate a
legally binding agreement was unexpected, and disappointing in face of what
had been classified by Cleveland-Cliffs' as "...a good transaction for all of
the parties involved."
ArcelorMittal Dofasco has advised US Steel and Cleveland-Cliffs that they
are obligated to complete the transaction as agreed to in September and that
the company will continue working to that end.
ArcelorMittal is the world's No. 1 steel company with 320,000 employees
in 60 countries. ArcelorMittal Dofasco is a leading North American steel
producer and supplier of high quality flat rolled steels.
For further information:
For further information: INFORMATION CONTACT: Andrew Sloan, (905)
548-7200 ext. 3105, or (905) 979-6093