ASX-listed BlueScope, which owns New Zealand Steel, said it had signed an agreement to sell all its shares in its Taharoa export ironsands business to Taharoa Mining Investments Ltd (TMIL), a majority-owned subsidiary of Taharoa C Block Incorporation.
Taharoa C is a Maori incorporation with a wide shareholder base that owns the land at Taharoa. TMIL supplies NZ Steel's Glenbrook mill, south of Auckland.
"BlueScope's sale of the Taharoa export ironsands business simplifies the company's portfolio and is consistent with the implementation of its strategy to focus on growing premium branded steel businesses, delivering competitive commodity steel supply in local markets and maintaining a strong balance sheet," the company said.
BlueScope will make a cash contribution of about $51 million and TMIL will assume all liabilities associated with the business including $76.5m in finance lease liabilities, it said.
The company said it expects to a reduction in its net debt of $25.5m at completion of the deal.
BlueScope said all material consents, including the local landowners and the shipping provider, have been obtained and that the target date for transaction completion is May 1.
