ArcelorMittal acquires Brazilian iron ore miner

Source: Manufacturing Digital

Date :8/20/2008 4:07:43 AM

ArcelorMittal announced today, August 20, it has agreed to acquire London Mining South America Ltd for US$810 million.

Through its partnership with Adriana Resources Inc, the steelmaker has also acquired a Brazilian port facility.

London Mining Brasil is located in the Iron Quadrangle, approximately 65 kilometres from Belo Horizonte, Brazil. It is currently expanding its production of iron ore concentrate and lump ore, in which ArcelorMittal is looking to invest US$700 million.

The company intends to use its share of the iron ore port facility in Rio de Janeiro to export iron ore from the newly-acquired mine to its steel facilities in the Atlantic basin.

Chief Financial Officer, Aditya Mittal, explained that the acquisition would diversify ArcelorMittal’s iron ore base in the face of tighter supply for raw materials.

As iron ore prices surged this year for the sixth consecutive year, founder Lakshmi Mittal said that he aims to increase the company’s self-sufficiency in iron ore to between 75 percent and 80 percent by the year 2014.