Algoma to sell stake in Tilden iron mine

Algoma Steel Corp., a wholly owned subsidiary of steel producer Dofasco, is seeking a buyer for its U.S. coal and iron ore interests, including its 30% stake in the Tilden mine, a Michigan-based iron ore pelletizing operation. Algoma intends to use the proceeds from the sale to retire debt and invest in its core steel business. The company’s share of production from the Tilden mine is about 2.6 million tons of a total 6.5 million tons of pellets scheduled to be produced in 1990.

Dofasco closed its Adams and Sherman iron mines in northern Ontario on March 31 because of the mines’ low ore grades and high production costs. The company has an ongoing supply of low-cost high- quality iron ore through a 50% ownership interest in Quebec Cartier Mining.