UPDATE 1-ArcelorMittal sues over mine sale collapse

(Updates with company response, background)

NEW YORK, March 13 (Reuters) - ArcelorMittal (ISPA.AS: Quote, Profile, Research) (MT.N: Quote, Profile, Research), the world's largest steelmaker, sued U.S. Steel Canada Inc (X.N: Quote, Profile, Research) and Cleveland-Cliffs Inc (CLF.N: Quote, Profile, Research) on Thursday for backing out of an agreement to sell their stakes in Canadian iron ore producer Wabush Mines.

"Our decision to pursue legal action is done in an effort to expedite the closure of the sale, and provide some much needed certainty for the employees at Wabush as well as the community and government stakeholders," it said in statement.

ArcelorMittal said it commenced legal action in the Ontario Superior Court to require the companies "to respect their commitment and comply with the sale of their respective interests."

U.S. Steel Canada, a unit of Pittsburgh-based U.S. Steel, and Cleveland-Cliffs, the largest U.S. producer of iron ore pellets used in steelmaking, had agreed to sell their interests in the Wabush joint venture in a deal signed last August.

But on March 4, the two companies backed out of negotiations, saying they decided not to pursue the sale.

"Everyone fully understood the terms of this agreement," ArcelorMittal's statement said. The Europe-based steelmaker had no further comment.

U.S. Steel declined comment on pending litigation and there was no immediate reply by Cleveland-Cliffs to a call from Reuters seeking comment.

U.S. Steel owns 44.6 percent of Wabush and Cleveland-Cliffs has a 26.8 percent stake. The remaining 28.6 percent in the mine company is owned by AreclorMittal's subsidiary, Dofasco, a Canadian steelmaker.