ArcelorMittal seeks to ensure iron ore supplies

09 April 2008

Mumbai: Steel giant ArcelorMittal plans to produce up to 70 per cent of its iron ore requirements by 2012, to protect itself from surging raw material prices, a senior official of the company said.

Iron ore prices have jumped nearly 70 per cent in the 2008-2009 contract year, amid strong demand for steel. Coal prices have more than doubled. These are expected to dent the earnings of steelmakers around the world.

ArcelorMittal also plans to boost its annual steel production capacity 18 per cent to 130 million tonnes by 2012.

Currently, ArcelorMittal has control over 10 billion tonnes of iron ore, enough to meet 45 per cent of its requirements.

The company is planning additional investments to expand raw material production.

While much of this will be organic growth, through expansion of existing operations in emerging markets like China, Russia, and Brazil, the company is also planning greenfield expansion in India.