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ArcelorMittal Enters Coal Mining Joint Venture in Mozambique

11/22/2007 - Under a new joint venture partnership with Black Gold Mining in Mozambique, ArcelorMittal will acquire a 35% equity in the joint venture company, Rio Minjova Mining and Exploration, for an initial payment of US$2.5 million.

ArcelorMittal has entered a joint venture partnership with the Mozambique-registered company Black Gold Mining (Moc) Lda.
 
Under the terms of the agreement, ArcelorMittal will acquire a 35% equity in the joint venture company, Rio Minjova Mining and Exploration Co., for an initial payment of US$2.5 million. Black Gold Mining will transfer its coal licenses, totaling 49 360 ha, in the Rio Minjova Area, which is situated at the eastern end of the Moatize-Minjova sub-basin in the Tete Province of Mozambique.
 
ArcelorMittal has an earn-in option to become the majority shareholder in the joint venture company, subject to a further payment of US$2.5 million and the confirmation of proven and probable coking coal reserves.
 
ArcelorMittal is the world's largest steel company, with 320,000 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 27 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 pro forma financials for 2006 show combined revenues of USD 88.6 billion, with a crude steel production of 118 million tonnes, representing around 10% of world steel output.