By Fanny Liu 
 

TAIPEI--Taiwan's China Steel Corp. (2002.TW) said Wednesday it has bought a 3.68% stake in an ArcelorMittal (MT)-controlled iron ore mining company in Canada for $270 million.

China Steel said in a statement it bought the stake as part of a Posco (005490.SE) consortium that agreed to buy 15% in the Canadian firm for $1.1 billion.

China Steel, Posco and "certain investors" have entered a joint venture partnership that will own ArcelorMittal's Labrador Trough iron ore mining and infrastructure assets, the Taiwanese steel maker said.

The investment could raise China Steel's iron ore feedstock self-sufficiency ratio by 4.2% to 11.6%, it said without providing further details.

The deal is subject to the Taiwanese government's approval and is expected to close in two installments in the first and second quarters of 2013, the company said.

Write to Fanny Liu at fanny.liu@dowjones.com

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