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ArcelorMittal to Acquire Three Coal Mines in Russia
02/01/2008 - ArcelorMittal signs agreements to acquire three coal mines and associated assets in Russia representing a combined estimated total reserve of more than 140 million tonnes for a total consideration of USD 720 million.
ArcelorMittal has signed agreements to acquire three coal mines and associated assets in Russia for a total consideration of USD 720 million.
As part of the transaction, ArcelorMittal will acquire a 97.59% stake in the Berezovskaya Mine and a 99.35% stake in the Pervomayskaya Mine from OAO Severstal in Russia. Both mines produce coking coal and are located in the Kemerovo Region of Russia.
ArcelorMittal will also acquire a number of assets associated with these two mines, including the exploration and mining rights to the Zhernovskaya-3 coal deposit, which is a subsidiary of the Pervomayskaya Mine. The deal also includes the acquisition of the Severnaya Coal Preparation Plant that is part of the Berezovskaya Mine, and three companies that provide the mines with associated services.
Finally, ArcelorMittal has also agreed to purchase 100% of the Anzherskoye mine.
The three mines have a combined estimated total reserve of more than 140 million tonnes. Together, the three operating mines produced 3.14 million tons RoM in 2007. The Zhernovskaya-3 coal deposit has an additional estimated reserve of 46 million tons.
“We are pleased to be acquiring these mines which will provide an important and competitive source of coking coal supplies for our steel production, raising our self-sufficiency from 10% to 15%,” said ArcelorMittal President and CEO Lakshmi N. Mittal. “This acquisition also helps ArcelorMittal establish a presence in Russia, a fast-growing market for steel production.”
All transactions are subject to regulatory approval.
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.
