Rio Tinto Selling Its Stake in Canada’s Biggest Iron Ore Company

The Globe and Mail reported today that mining giant, Rio Tinto (TSX:RIO), is looking for a buyer for its majority stake in Iron Ore Company of Canada (IOC). Rio has appointed Credit Suisse and CIBC to see to the transaction. Rio owns 59 percent of IOC and the transaction could be tagged over $1.7 billion.

As quoted in the market news:

While iron ore assets up for sale are plentiful at a time of rising costs and uncertain economic prospects, few of these are producing. IOC, however, has been producing since 1954.

Rio’s move to sell its IOC stake follows steelmaker ArcelorMittal’s sale of a 15-per-cent stake in one of its iron ore operations in Canada earlier this year, raising $1.1-billion to help pay off debt. Arcelor sold the stake to a consortium including South Korean steel maker POSCO.

Click here to read the full report.