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ArcelorMittal to Acquire 49% of Mineração Pirâmide Participações

08/12/2008 - ArcelorMittal signs an agreement to acquire 49% of the share capital in Mineração Pirâmide Participações Ltda, with the price based on the assessed amount of iron ore and manganese reserves held in situ.

ArcelorMittal has signed an agreement to acquire 49% of the share capital in Mineração Pirâmide Participações Ltda (MPP).
 
Located in Corumbá in the State of Mato Grosso do Sul, Brazil, MPP is a mining company focused on exploration and development of local iron ore and manganese reserves. ArcelorMittal’s payment will be 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”).
 
“This investment represents a continuing development in our strategy of upstream integration. Securing supplies of iron ore is an important part of that strategy and will contribute to the future sustainability of our business,” commented, Sudhir Maheshwari, Member of ArcelorMittal's Group Management Board with responsibility for M&A, Project and Business Development.
 
ArcelorMittal said that it plans to make additional investments to increase MPP’s iron ore production capacity in the short term. The transaction is subject to receipt of relevant regulatory approvals.
 
ArcelorMittal is the world's leading steel company, with over 320,000 employees in more than 60 countries. The company leads a number of major global steel 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. With an industrial presence in over 20 countries spanning four continents, the company covers key steel markets, from emerging to mature.
 
Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and wellbeing of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources. The company also takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combating climate change.
 
In 2007, ArcelorMittal had revenues of USD 105.2 billion and crude steel production of 116 million tonnes, representing around 10% of world steel output.