Dofasco ups stake in Quebec Cartier

Last month, Dofasco bought an initial 25% stake in the Quebec iron mining operation to provide a new source of iron pellets for its steel mills at Hamilton, Ont. Dofasco simultaneously announced plans to gradually shutdown its two northern Ontario iron mines, which will eliminate 700 jobs over the next year. The mines are closing down because they are not cost competitive, the company said.

Quebec Cartier operates a large iron ore mine at Fermont, Que., near the Labrador border. Iron ore pellets from that operation are shipped from Port Cartier on the north shore of the St. Lawrence River.

The recent purchase agreement with Dofasco means that control of Quebec Cartier will not go to Elders Resources North America, a subsidiary of Elders Resources, an Australian group. That company had previously planned to acquire the 75% interest in Quebec Cartier, but Dofasco exercised its right of first refusal to purchase the remaining interest.

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