Dofasco to buy Quebec Cartier Mining

It’s very interesting … of the major canadian steel mills, Dofasco has emerged healthy after going through a round of bankrupcy stuff. Mostly you hear from them only when they’re doing good stuff.

Now Stelco, just down the road from us in Hamilton, on the other hand, you hear from every other day getting into a fistfight with their union publicly and splatted across several web sites. In fact, the supervising judge for the bankrupcy had to discipline them both at one point, saying something to the effect that he doubted either one was really operating in good faith.
TORONTO, June 9 (Reuters) – Dofasco Inc. plans to acquire most of the remaining interest that it does not already own in Quebec Cartier Mining Company for C$306 million ($245 million), and may spin off the unit, Canada’s second-biggest steelmaker said on Thursday.

“Given the rapid change in global iron ore markets and the pricing outlook, it will be prudent for Dofasco to hold equity in QCM at a level sufficient to hedge our iron ore purchases,” Pether said in a statement.

QCM produces iron ore products in Quebec and operates an open pit mine, crusher/concentrator facility, pellet plant, deep-water harbor and a railway linking the mine to the harbor on Quebec’s North Shore region.

The announcement conference call is happening even as we speak, and the stock has already risen 7% on the morning, so something good must be happening there!

[It’s now 9PM EST and the stock rose a total of 10.6% on the day]

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