ArcelorMittal to Acquire Concept Group
07/22/2008 - ArcelorMittal will acquire the Concept Group of southern West Virginia, which is located adjacent to the recently acquired Mid Vol Coal Group.
ArcelorMittal has signed an agreement to acquire the Concept Group of southern West Virginia. The facility is located adjacent to the recently acquired Mid Vol Coal Group in the Central Appalachian Coal Basin.
Concept produced 0.8 million tons of metallurgical coking coal in 2007. According to a Marshall Miller report commissioned by Concept using methodology outlined in United States Geological Survey (USGS) Circular 891 and United States Securities and Exchange Commission (SEC) Industry Guide 7, the company has control over more than 57 million tons of recoverable saleable reserves and resources.
“With raw material costs continuing to soar, increasing our upstream self sufficiency in primary raw materials is a critical component of ArcelorMittal’s growth strategy,” commented Sudhir Maheshwari, Member of ArcelorMittal's Group Management Board with responsibility for M&A, Project and Business Development. “Concept’s proximity to Mid Vol’s operations means we can draw on the strengths of both companies to increase their combined production capacity.
“Whilst Mid Vol’s expertise is in surface mining techniques, Concept’s expertise rests with underground mining methods,” added Maheshwari. “However, both operations have the potential to combine both practices. We look forward to integrating Concept’s operations into the ArcelorMittal group.”
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, and holds leading R&D and technology assets, as well as sizeable captive supplies of raw materials and outstanding 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.
