( BW)(ARCELORMITTAL)(MT.LU)(MT.AS)(MTBL.Y)(MTP.PA)(MT) ArcelorMittal
Acquires Brazilian Iron Ore Miner, London Mining Brasil and Acquires
Brazilian Port Facility Through Partnership with Adriana Resources
Inc.
Business Editors
LUXEMBOURG--(BUSINESS WIRE)--Aug. 20, 2008--Regulatory News:
ArcelorMittal, the world's leading steel company, today announces
that it has agreed to acquire 100% of the issued share capital of
London Mining South America Limited ("London Mining Brasil") from Oslo
listed London Mining plc ("London Mining") for approximately US$764
million. The transaction also includes the assignment of inter-group
loans from London Mining of approximately US$46 million. The total
consideration payable to London Mining will amount to approximately
US$810 million.
London Mining Brasil is an iron ore miner located in the Iron
Quadrangle in the state of Minas Gerais approximately 65 kilometres
from the city of Belo Horizonte, Brazil. Its principal activities are
focused on the exploration, development and production of iron ore
resources in the region.
London Mining Brasil's Central, Eastern and Western Claims contain
an estimated 1,059 million tonnes of measured, indicated and inferred
iron ore resources. The iron ore from the London Mining Brasil mine
has an average Fe grade of 38.0% and contained Fe of 402.6 million
tonnes under Brazilian Reporting Standards.
London Mining Brasil is currently in the process of expanding its
production of iron ore concentrate and lump ore from 1.4Mtpa to
3.2Mtpa in 2009 due to the operation of a recently commissioned sinter
feed plant. Subject to further technical analyses, ArcelorMittal will
consider investing up to US$700 million to increase production in the
medium term to in excess of 10Mtpa.
ArcelorMittal has also reached an agreement (subject to contract)
with Canadian based Adriana Resources Inc. ("Adriana") for the
development of an iron ore port facility in the State of Rio de
Janeiro, Brazil (the "Port"). The Port is located in the Third
District of the City of Mangaratiba and will be constructed on land
acquired by Adriana in January 2008. 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.
ArcelorMittal's agreement with Adriana includes the following
elements:
-- Through a series of transactions, ArcelorMittal will acquire
80% of the Port for total consideration of approximately
US$40.5 million with Adriana holding the remaining 20%;
-- ArcelorMittal has agreed to acquire up to 19.9% of Adriana's
common shares in two private placements and will also be
granted a seat on Adriana's Board of Directors;
-- The parties will each fund their pro rata portion of the Port
development costs estimated to total approximately US$250
million for the first 10Mtpa of capacity; and
-- The parties will share in the capacity of the Port in
proportion to their ownership.
Commenting, Aditya Mittal, Chief Financial Officer and Member of
ArcelorMittal's Group Management Board said:
"This is another important investment in the dynamic Brazilian
market. The acquisition of London Mining Brasil along with our
investment in MPP - Mineracao Piramide Participacoes Ltda ensures that
our iron ore base is further diversified in the face of tighter supply
for raw materials. In addition, the planned port facility at Sepetiba
Bay in Brazil is the ideal captive solution to deliver access to the
export market for ore from the Iron Quadrangle region."
The above transactions are subject to receipt of the necessary
approvals.
Notes to Editors
The Port site sits on a 771,818m2 parcel of land approximately 70
kilometres west of Rio de Janeiro in Sepetiba Bay on the coast of
Brazil. The purchase of the adjacent Lot 3 comprising 85,757m2 is
expected to be completed during the third or fourth quarter of 2008.
The Port site has direct access to an extensive railway and
transportation network. Permitting is underway and the site received
Terms of Reference for environmental requirements on 28 May, 2008.
Construction of the port facility is expected to commence as early as
Q4 of 2008 and will take an expected 18-24 months to complete. It is
expected that the Port will initially operate at a transshipment
capacity of 5 to 10Mtpa.
RBC Capital Markets acted as the exclusive financial adviser to
ArcelorMittal in respect of both transactions.
About ArcelorMittal
ArcelorMittal is the world's leading steel company, with over
320,000 employees in more than 60 countries.
ArcelorMittal is the leader in all 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 all of the 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.
ArcelorMittal recognises that it has a significant responsibility to
tackle the global climate change challenge: it 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 combat climate change.
In 2007 ArcelorMittal had revenues of USD 105.2 billion and crude
steel production of 116 million tonnes, representing around 10 per
cent of world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on
the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia
(MTS).
For more information about ArcelorMittal visit:
www.arcelormittal.com
--30--PP/ny*
CONTACT: ArcelorMittal Investor Relations
Europe, +352 4792 2414
Americas, +1 312 899 3569
Retail, +352 4792 2434
SRI, +44 203 214 2854
Bonds/Credit, +33 1 71 92 10 26
or
ArcelorMittal Communications
E-mail: press@arcelormittal.com
Phone: +352 4792 5000
or
ArcelorMittal Corporate Communications
Haroon Hassan, +44 20 3214 2867
Erlendas Grigorovic, +44 20 3214 2422
Jean Lasar, +352 4792 2359
or
Maitland Consultancy:
Martin Leeburn / David Sturken, +44 20 7379 5151
or
Belgium
Charles-Hubert Gernaert, Comfi, +32 2 290 90 90
or
North America
Bill Steers, +1 312 899 3817
Adam Warrington, +1 312 899 3596
or
Netherlands
Smink, Van der Ploeg & Jongsma
Leon Melens, +31 20 647 81 81
or
Germany
Phoebe Kebbel, Markus Talanow, Hering Schuppener
+49 69 92 18 74 77 / +49 69 99 18 74 70
or
France
Image 7
Anne France Malrieu, +33 1 5370 7470
Tiphaine Hecketsweiler, +33 1 5370 7470
or
Spain
Ignacio Agreda, +34 94 489 4162
Oscar Fleites, +34 98 512 60 29
Keith Grant, +34 639 760 397
Disclaimer: Deze bekendmaking is officieel geldend in de originele
brontaal. Vertalingen zijn slechts als leeshulp bedoeld en moeten
worden vergeleken met de tekst in de brontaal welke als enige,
juridische geldigheid beoogt.
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