HAMILTON, ONTARIO - DOFASCO successfully completed the acquisition of QUEBEC CARTIER MINING CO. (QCM) this week, following receipt of regulatory approval. The acquisition was first announced on June 9.
Montreal-based QCM is a leading producer of iron ore products in Quebec. It operates an open pit mine, crusher/concentrator facility, pellet plant, deep-water harbour and a railway linking the mine to the harbour on Quebec's North Shore region. QCM's total 2004 revenues were $621.4 million on shipments of 13.6 million tonnes, with net income of $80.9 million. Its 2005 production is sold out at prices that have increased approximately 86% for pellets, and 71% for iron ore concentrate. A recent strike was settled on June 3, and the company reached a six-year agreement with its unions. At the end of May, QCM had cash on hand of $128.3 million, and bank debt of $41.4 million.
Dofasco purchased all of the preferred shares of QCM owned by CAEMI of Brazil and INVESTISSEMENT QUEBEC for $306 million. Dofasco already owned the remaining one-third of the preferred shares. Preferred shares were then converted into common shares, resulting in Dofasco holding approximately 98.7% of the common shares of QCM.
Dofasco is a leading North American steel maker. For further information contact Charlene Gallagher at 905-548-7200, ext. 3207 or visit www.dofasco.com or www.qcmines.com.