SYDNEY, Nov 4 (Reuters) - Australian industrial group Arrium has sold its Moly-Cop unit for $1.2 billion to private equity firm American Industrial Partners, a spokesman for KordaMentha told Reuters.

The deal is expected to be settled in January. Moly-Cop, which makes steel balls to grind ore, operates mostly in the United States and Latin America.

(Reporting by James Regan; Editing by Richard Pullin)