ArcelorMittal announces major investments in Brazil

20 August 2008

ArcelorMittal SA, the world's biggest steel producer, announced today it has acquired London Mining Brasil, a Brazilian iron ore miner, and said it will develop port facilities in Rio de Janeiro state together with Canadian iron ore producer Adriana Resources Inc.

The world's largest steelmaker said it would acquire all of London Mining Brasil's issued share capital from London Mining Plc for $764 million (€520.5 million) and assume loans of $46 million (€31.3 million) raising the cost of the acquisition to $810 million (€551.9 million).

The transaction also includes the assignment of inter-group loans from London Mining of approximately $46 million. The total consideration payable to London Mining will amount to approximately $810 million.

This acquisition by ArcelorMittal will shore up its iron ore supply to 75 per cent from its present level of 45 per cent by 2012.

London Mining Brasil is located 65 kilometers (40 miles) from Belo Horizonte, Brazil. It has an estimated 1,059 million tonnes of measured, indicated and inferred iron ore resources, ArcelorMittal said, adding it was considering investing another $700 million to increase production.

ArcelorMittal also announced it reached an agreement with Canada's Adriana Resources for the development of an iron ore port facility in the State of Rio de Janeiro in Brazil. "ArcelorMittal intends to use its share of the port's capacity to export iron ore from the London Mining Brasil mine to its steel facilities in the Atlantic basin," it said.