ArcelorMittal takes 49 per cent in Brazilian miner

11 August 2008

Mumbai: ArecelorMittal, the world's largest steelmaker, has agreed to acquire a 49 per cent stake in Brazilian mining company Mineracao Piramide Participacoes (MPP) for an undisclosed price.

MPP, based in Corumba in the state of Mato Grosso do Sul, focuses on exploration and development of iron ore and manganese reserves in the region.

Luxembourg-based ArcelorMittal said the price is yet to be assessed but added it plans to make additional investments to increase MPP's iron ore production capacity in the short term.

''The price to be paid by ArcelorMittal will be calculated based on the amount of iron ore and manganese reserves `in situ' assessed according to the code for the reporting of mineral resources and ore reserves of the Australasian Joint Ore Reserves Committee (JORC),'' the company said.

''This investment represents a continuing development in our strategy of upstream integration,'' said Sudhir Maheshwari, ArcelorMittal director responsible for merger and acquisition, project and business development said.

''Securing supplies of iron ore is an important part of that strategy and will contribute to the future sustainability of our business,'' he added.