ArcelorMittal is reportedly suspending Mont-Wright iron ore mine expansion project in Quebec, Canada, due to weak market conditions.

The Mont-Wright mine currently employs 2,500 workers and produces 27 million tonnes per year.

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The project would have prolonged the mine life by a further 15 years up to 2045.

ArcelorMittal spokesman Paul Wilson said that the suspension was based on the project cost and high mine production expenses.

"ArcelorMittal Mining Canada is in discussions with unions regarding the best way to proceed with this project."

Reuters quoted ArcelorMittal Mining as saying: "Due to the current iron ore market conditions and the resulting need to reduce ArcelorMittal Mining Canada’s operating costs further, one specific project, which was originally due to start this summer, has been indefinitely delayed.

"ArcelorMittal Mining Canada is in discussions with unions regarding the best way to proceed with this project."

Separately, ArcelorMittal USA and Cliffs Natural Resources have signed an iron ore supply agreement through to 2026.

The new agreement will secure seven million to ten million tonnes of iron ore pellets for ArcelorMittal’s Indiana Harbor East, West and Cleveland blast furnace operations.

It will replace two existing agreements expiring in December this year and January next year.

ArcelorMittal USA president and CEO John Brett said: "The market based pricing mechanisms at the core of this agreement provide ArcelorMittal USA with increased financial flexibility, better aligning raw material costs with pricing conditions in the steel market.

"Similar to the previous agreements, the new agreement also allows us to adjust volumes based on market conditions."