Rio Tinto canceled plans for an IPO or sale of 59%-owned subsidiary Iron Ore Co. of Canada Inc., The Wall Street Journal reported late Sept. 29, citing a person familiar with the development.
The company has been unable to agree with potential buyers on a price for the stake amid shifts in iron ore prices, according to the report.
Regarding the Canadian unit, CEO Jean-Sebastien Jacques said in 2017 that "I want to clean up the portfolio as quickly as I can but, at the same time, there will not be a fire sale."
According to a report from December 2018, Rio Tinto was said to be pursuing a dual listing in New York and Toronto for Iron Ore Co. of Canada and was targeting a valuation of about US$4 billion in the IPO, though the plan depended on market conditions improving.
The company failed to sell its stake in the Canadian miner for between US$3.5 billion and US$4 billion in 2012.
The unit operates the IOC iron ore mining operation in Labrador and is owned by Rio Tinto in a joint venture with Japan's Mitsubishi Corp. with a 26% interest, and Labrador Iron Ore Royalty Corp., with a 15% stake.
