Arcelor Metal Reaches Agreement with Canadian Adraina to Develop Port Facility in Brazil, and Purchase London Mining Brasil
ArcelorMittal, the world’s biggest steel producer, announced a $250mln agreement with Canada’s Adriana Resources for the development of an iron-ore port facility in Rio de Janeiro Brazil. The port will be built on lands acquired by Vancouver-based Adriana Resources in January.The announcement came on the heals of Arcelor’s $810mln acquisition of London Mining Brasil.
According to a company statement, the firm plans to use its share of Adriana’s port’s capacity to export iron ore from London Mining’s Brasil mine to its steel facilities in the Atlantic basin.
London Mining Brasil has an estimated 1,059 mln tonnes of iron ore resources, and ArcelorMittal is considering investing another $700 mln to increase production.
Since its creation in 2006, ArcelorMittal has been aggressively seeking to raise its iron ore self-sufficiency to 75% by 2012 from its current 45%, and has already raised its coal self-sufficiency to 20% from 15% following the purchases of mines in Russia and the U.S this year. The company has, over the past two years spent billions of dollars in investments and acquisition in both developing and mature economies.