ArcelorMittal announces greenfield manganese project in South Africa

On November 20 2007, ArcelorMittal and the South African manganese development company Kalagadi Manganese announced a strategic equity partnership in respect of the development of Kalagadi’s manganese resources.

The 50/50 joint venture will see the development of a manganese mine, beneficiation plant and sinter complex in Hotazel and a smelter complex in Coega. A ferromanganese alloy production facility will also be established in the Coega Industrial Development Zone in Port Elizabeth, which will account for at least 50% of ArcelorMittal’s needs.

Drilling to-date has confirmed the presence of a high grade manganese ore resource sufficient to support a life of mine in excess of 20 years. The project, which is due to come on-line in 2010, overlies the Kalagadi Manganese Basin, a world renowned source of manganese ore containing 80 percent of the world’s known manganese resources.

Kalagadi Manganese is 80% owned by Kalahari Resources, a majority black women owned and controlled company. The remaining 20% is held by the South African state-owned financier, the Industrial Development Corporation.