Companies

ArcelorMittal, Wuhan Steel plan joint investments of mines

(Agencies)
Updated: 2010-08-16 16:20

ArcelorMittal, the world's largest steelmaker, may jointly invest and acquire mines with China's Wuhan Iron & Steel Group as rising commodity prices spur mills globally to gain greater control of raw material supplies.

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A list of possible projects may be drawn up soon, China's third-largest steelmaker said in a statement on its website, citing ArcelorMittal. Peter Kukielski, head of mining with the Luxembourg-based steelmaker, visited Wuhan Steel on Aug 12, the statement said.

ArcelorMittal will help extend Wuhan Steel's expansion drive, which has seen the Chinese steelmaker invest in Brazil, purchase iron ore from Venezuela and explore for the commodity in Madagascar. Iron ore and coking coal prices have soared because of rising demand from China.

"Other than meeting its own raw material requirements, ArcelorMittal is also seeking long-term customers," Wuhan Steel said in the statement.

ArcelorMittal plans to expand iron ore production capacity 67 percent by 2015, raising it to 100 million metric tons from 60 million tons, Kukielski said March 24. It's looking at expansion plans in countries including Liberia, Senegal and Mauritania, he said.

Wuhan Steel wants to be self-sufficient in iron ore supplies in three to five years, General Manager Deng Qilin said March 7. The Hubei province-based company in November agreed to pay $400 million for almost 22 percent of MMX Mineracao e Metalicos SA, an iron ore company controlled by Brazilian billionaire Eike Batista.