World's largest steel-maker ArecelorMittal today announced the acquisition of 49 per cent stake in the Brazilian mining firm Mineracao Piramide for an undisclosed amount.
The company has signed an agreement to acquire 49 per cent of the share capital in Mineracao Piramide Participacoes (MPP), said a statement issued by ArcelorMittal.
"The price to be paid by ArcelorMittal will be calculated based on the amount of iron ore and manganese reserves 'in situ' assessed according to the code for the reporting of mineral resources and ore reserves of the Australasian Joint Ore Reserves Committee (JORC)," the company said.
"This investment represents a continuing development in our strategy of upstream integration. Securing supplies of iron ore is an important part of that strategy and will contribute to the future sustainability of our business," ArcelorMittal Group's Management Board Member Sudhir Maheshwari said.
Located at Corumba in Brazil, MPP focuses on the exploration and development of iron ore and manganese reserves in the region.
Further, the global steel player is planning to make investments for expanding the Brazilian firm's production capacity.
"ArcelorMittal also plans to make additional investments to increase MPP's iron ore production capacity in the short term," the statement added.
However, the transaction is subject to regulatory approvals, the statement noted.
