Mumbai: ArcelorMittal has acquired US-based coal producer Concept Group as the world's largest integrated steel producer strives to secure raw material security.
"With raw material costs continuing to soar, increasing our upstream self sufficiency in our primary raw materials is a critical component of our growth strategy."
"With raw material costs continuing to soar, increasing our upstream self sufficiency in our primary raw materials is a critical component of our growth strategy. Concept's proximity, on adjacent coal properties to our recently acquired Mid Vol operations means we can draw on the strength of both companies in increasing the combined production capacity," Aditya Mittal, chief financial officer and member of ArcelorMittal group's board, said.
The new acquisition is close to the Mid Vol Coal Group in the Central Appalachian Coal Basin in West Virginia that ArcelorMittal acquired recently.
Concept has control over recoverable saleable reserves and resources in excess of 57 million tonnes and produced 0.8 million tonnes of metallurgical coking coal in 2007, ArcelorMittal said in a statement.
The proximity of the two coal mines having expertise in underground min ing and surface mining will be of great use as ArcelorMittal could draw on the strengths of bvoth, Mittal said.
Mid Vols has expertise in surface mining techniques while Concept has expertise in underground mining methods. ''However, both operations have the potential for combining both practices. We look forward to integrating the Concept operations into the ArcelorMittal group," he added.
Financial details of the deal were not disclosed.