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ArcelorMittal Completes Acquisition of Russian Mining Interests

04/11/2008 - ArcelorMittal has completed its acquisition of three coal mines and associated assets in Russia for total consideration of US$718 million.

ArcelorMittal has completed its acquisition of three coal mines and associated assets in Russia for total consideration of US$718 million.
 
As previously announced, the company has acquired a 97.9% stake in the Berezovskaya Mine as well as a 99.46% stake in the Pervomayskaya Mine from Severstal. Both mines produce coking coal and are located in the Kemerovo Region; in 2007, they produced 1.77 million tonnes of coking coal concentrate.
 
As part of the agreement, ArcelorMittal also acquired the exploration and mining rights to the Zhernovskaya-3 coal deposit (a subsidiary of the Pervomayskaya Mine). The company also acquired the Severnaya Coal Preparation Plant, which is part of the Berezovskaya Mine, as well as three companies that provide the mines with associated services. Additionally the company has completed its acquisition of 100% of the Anzherskoye mine in the Kemerovo Region.
 
In 2007, total production from the three operating mines—which have a combined estimated total reserve of more than 140 million tonnes—was 3.14 million tonnes RoM. The Zhernovskaya-3 coal deposit has an additional estimated reserve of 46 million tonnes.
 
ArcelorMittal is the world's largest and most global steel company, with 310,000 employees in more than 60 countries. The company leads a number of major global 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. An industrial presence in 28 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
 
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.