Dofasco dumps Qubec Cartier stake

Hamilton-based steel maker Dofasco has reduced its ownership stake in Qubec Cartier Mining Co., an iron ore subsidiary in Port-Cartier, Que.

Dofasco has struck a deal to sell part of Qubec Cartier to outside investors in a move aimed at financing the subsidiary’s expansion.

The company’s Mont-Wright mine in northern Quebec requires an investment of $350 million in order to continue operating for another 15 years.

The company would not divulge who is buying into Qubec Cartier, though the Quebec government is believed to be one of the partners.

Dofasco and Caemi Mineracao e Metalurgia of Brazil each own half of Qubec Cartier, which has offices in Montreal and London.

Dofasco says that under the restructuring both companies will see their ownership stakes “reduced significantly.”

Qubec Cartier is one of Canada’s largest iron ore producers. In addition to the Mont-Wright mine, it operates a pellet plant at Port-Cartier. The company employs about 1,800 in all.