BlueScope Steel Ltd. has agreed to sell 100% of its shares in its Taharoa export iron sands business in New Zealand to Taharoa Mining Investments Ltd., a majority owned subsidiary of Taharoa C Block Inc.

The company will make a cash contribution of about NZ$51 million and Taharoa Mining will assume all liabilities associated with the business, including NZ$76.5 million in finance lease liabilities.

BlueScope expects a reduction in net debt of NZ$25.5 million at completion, it said April 3.

The transaction is expected to complete May 1.

Taharoa C is a Maori Incorporation that owns the land at Taharoa.