BlueScope to sell NZ iron sands business for $NZ250m

The sale is expected to be completed in the fourth quarter of calendar 2008.

"The sale generates a strong financial return for BlueScope Steel and reflects the current high world demand for iron ore," managing director and chief executive Paul O'Mally said.

"We are pleased with the financial outcome from this transaction."

BlueScope's New Zealand steel business operates two iron sands mining operations, Taharoa and Waikato North Head, through its subsidiary, New Zealand Steel Mining Ltd.

The Taharoa mining operation is a purely export focused business, whilst Waikato North Head is integral to New Zealand Steel's steel making operations at Glenbrook, and will remain with the company.

BlueScope said it remains committed to the ongoing development of its New Zealand business.

"The Waikato North Head mine supplies New Zealand Steels steelmaking operations and is a strategic component of the overall New Zealand platform," it said.

"The Waikato North Head mine has ample reserves to provide for current and future steelmaking at New Zealand Steel, and together with its dedicated employee group is a key component of New Zealand Steels future," it added.