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ArcelorMittal Increases Shareholding in Macarthur Coal
06/30/2008 - ArcelorMittal increases its stake in Queensland-based Macarthur Coal Limited to 19.9% with the acquisition of an additional 10,607,830 shares from Talbot Group Holdings.
ArcelorMittal has increased its stake in Macarthur Coal Limited from 14.9% to 19.9%, following the acquisition of an additional 5% stake (10,607,830 shares) from Talbot Group Holdings.
The additional shares, which were purchased at $ AUD 20, bring ArcelorMittal’s total investment in Macarthur Coal to $ AUD 843 million.
ArcelorMittal said acquisition of this holding is in line with its strategy of securing its supply of raw materials, in this case through the acquisition of a stake in a leading supplier of low volatile pulverized coal injection (PCI) coal.
The purchase is subject to Foreign Investment Review Board approval.
Queensland-based Macarthur Coal is a key supplier of low volatile PCI coal to the steel mills of Asia, Europe and the Americas, providing approximately 44% of the low volatile PCI coal exported from Australia.
Macarthur Coal’s mining assets are situated in Queensland’s Bowen Basin and its corporate headquarters located in Brisbane. Major assets are Coppabella Mine and Moorvale Mine. Macarthur Coal has large exploration tenement holdings that provide a project pipeline for the development of new mines.
Macarthur Coal’s mines and exploration tenements are held within unincorporated joint ventures, a structure which has allowed the company to gain significant strategic benefits by involving other parties in its projects.
ArcelorMittal is the world's largest integrated metals and mining company, with over 310,000 employees in more than 60 countries. The company leads a number of major global markets, with leading R&D and technology, as well as sizeable captive supplies of raw materials and strong distribution networks. An industrial presence in over 20 countries across 4 continents exposes the company to key steel markets, from emerging to mature.
ArcelorMittal’s key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output.
