Rio Tinto said to ditch sale or IPO of Canadian iron ore unit

Rio Tinto was said on Monday to have scrapped plans for a sale or initial public offering of its Canadian iron-ore unit following a year-long attempt to offload the business.

According to the Wall Street Journal, Rio has not been able to agree a price with any potential suitors for its 59% stake in Iron Ore Co. of Canada.

The unit produces iron-ore concentrate and pellets from mining operations and processing facilities in Newfoundland and Labrador. It also runs port facilities in Quebec.

The business is a joint venture between Rio Tinto, Mitsubishi Corp, which owns 26%, and the Labrador Iron Ore Royalty Income Corp., which owns 15%.