Dec. 2006 — Arcelor Mittal has signed a Memorandum of Understanding with the Government of the State of Orissa in India regarding a new 12 million tonne/year integrated steelmaking operation in the Keonijhar District.

Arcelor Mittal says it will now undertake a Detailed Project Report (DPR) based on the needs of the steel plant. The DPR would address captive mining facilities, captive power supply, water supply infrastructure and other facilities as required, including setting up townships for its employees.

The project to build the plant, which is expected to entail an investment of approximately Rs 40,000 crores (approximately US$9 billion), would be developed in two phases of 6 million tonnes each. Arcelor Mittal expects that the first phase would be completed within 48 months from the date of the Submission of the DPR. The second phase would be completed within 54 months after the completion of Phase 1.

The company has also pledged its support to the community as part of its commitment to Corporate Social Responsibility in the countries in which it operates.

“We have always said that we want to have an operational presence in India,” said Mr. Lakshmi N. Mittal, President and CEO of Arcelor Mittal. “The Indian economy is demonstrating excellent growth and steel consumption is set to increase considerably in the future.”

“Orissa is well known for its rich mineral reserves and as such is an ideal location for such a Greenfield venture. Mr. Naveen Patnaik, its Chief Minister, has done an excellent job in attracting foreign investment to the region and it is showing signs of becoming one of the major steel industry hubs of the future.”

Arcelor Mittal is the world's largest steel company, with 330,000 employees in more than 60 countries. The company brings together the world's number one and number two steel companies, Arcelor and Mittal Steel.

Arcelor Mittal is a leader in many major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.