ArcelorMittal acquires three coal mines (Russia)

ArcelorMittal announced on January 31 that it has signed agreements to acquire three coal mines and associated assets in Russia for a total consideration of US$720 million.

ArcelorMittal will acquire a 97.59% stake in the Berezovskaya Mine, a 99.35% stake in the Pervomayskaya Mine, the exploration and mining rights to the Zhernovskaya-3 coal deposit and the Severnaya Coal Preparation Plant as well as three companies that provide the mines with associated services. ArcelorMittal has also agreed to purchase 100% of the Anzherskoye mine. All the transactions are subject to regulatory approval.

Annual production from the three operating mines is 3.14 million tons RoM in 2007. Commenting, Mr. Lakshmi N. Mittal, President and CEO, ArcelorMittal, said that they were pleased to be acquiring these mines which would provide an important and competitive source of coking coal supplies for their steel production, raising their self-sufficiency. He added that this acquisition also helped ArcelorMittal establish a presence in Russia, a fast growing market for steel production.