TPT May 2008

From the AmericaS

Post (Toronto, 27 March), the lawsuit also names the Ohio firm of Cleveland-Cliffs Inc for helping derail the alleged sales agreement when skyrocketing world prices for iron ore cast the mine, and its potential, in a new light. “By reason of their own self-interest, Cliffs and US Steel did not proceed in good faith,” reads the 23-page claim filed 20 March by the Canadian unit of Luxembourg-based ArcelorMittal. “[The defendants] realized the real value of the Wabush Mines joint venture and the fact that they should never have agreed to sell their respective interests.” Mr Brieger wrote, “ArcelorMittal is asking the Ontario Superior Court of Justice to force its longtime partners to honour a deal that calls on them to sell their 71 per cent share in the mine for $427 million.” Otherwise, reads the claim, the two companies should pay $1.8 billion in damages to Dofasco. US Steel now owns Dofasco’s long-time rival Stelco: also, like Dofasco, with headquarters in Hamilton, Ontario. › In other news of ArcelorMittal, the world’s largest steel maker has confirmed plans to sell its Sparrows Point steel mill in Baltimore, Maryland, to the Russian steel company OAO Severstal for $810 million. ArcelorMittal agreed in February 2007 to the sale of Sparrows Point to resolve US Justice Department antitrust concerns about production of tin-plated steel. Sparrows Point, the only fully integrated producer of flat rolled steel on the East Coast of the US, has a capacity of 3.9 million tons of crude steel.

current technology does not have any appreciable impact on this challenge.” • Some committee members expressed approval of the commitments made by BP and Shell in alternative energy sources. But Mr Markey wants to see even more of an effort on their part: investment of at least 10 per cent of their profits in renewables and alternative energy sources. The Houston Chronicle ’s Mr Ivanovich reported that Rep Emanuel Cleaver, of Missouri, asked Mr Simon to comment on the $400 million 2005 retirement package of a former Exxon Mobil chairman. “That is in the past,” Mr Simon said – adding that the package, which was decided by outside directors, was not inconsistent with the cushion taken with them into retirement by other executives of comparable stature. Steel ArcelorMittal unit sues US Steel Canada over iron mine ArcelorMittal Dofasco Inc is suing US Steel Canada Inc for $1.8 billion for allegedly having reneged on a deal to sell its stake in a Labrador iron ore mine. As reported by Peter Brieger of the Financial

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M ay 2008

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