Global steelmaker buys stake in Canadian firm, teams on $250-M iron-ore port project

Published Thursday August 21st, 2008

The Canadian Press

VANCOUVER - Global steelmaker ArcelorMittal is teaming with a small Canadian resources company to develop a US$250-million iron ore port in Brazil.

The port will be built on lands in the state of Rio de Janeiro that were acquired by Vancouver-based Adriana Resources Inc. in January.

ArcelorMittal, the world's biggest steel producer and owner of Canada's largest steelmaker by revenues, the former Dofasco Inc. of Hamilton, will acquire 80 per cent ownership of the lands and buy nearly 20 per cent of Adriana for about $65.5 million.

That includes $40.5 million for the port and C$25 million for 24.9 million Adriana shares representing 19.9 per cent of the Canadian company.

Michael Beley, president and CEO of Adriana, said the deal cements the its strategy to develop a port to export Brazil's iron ore deposits.

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