ArcelorMittal, the world’s biggest steelmaker, will sell a $1.1 billion stake in a Canadian iron ore mine operator to a consortium that includes South Korean steelmaker Posco and Taiwan-listed China Steel, the latter group said in a statement.

ArcelorMittal, formed in 2006 when India-born Lakshmi Mittal’s steel business bought European peer Arcelor for $33 billion, is battling sluggish steel demand and is looking to offload assets to cut debt.

The sale of a 15 per cent stake in Canada’s Labrador Trough iron ore mining and infrastructure asset is part of that process.

Posco, China Steel and ArcelorMittal Mines Canada will own Labrador Trough through a joint venture and will enter into long-term iron ore supply agreements, China Steel said in the statement on its Website. – (Reuters)