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LONDON: Global steel player ArcelorMittal on Wednesday said it will acquire Brazilian iron ore miner London Mining South America (London Mining Brasil) for $810 million.

ArcelorMittal said it has agreed to acquire 100 per cent of the issued share capital of London Mining South America Ltd from Oslo Stock Exchange-listed London Mining Plc for about $764 million.

“The transaction also includes the assignment of inter-group loans from London Mining of about $46 million, taking the total consideration payable to London Mining to $810 million,” the steel major said in a statement.

London Mining Brasil is currently in the process of expanding its production of iron-ore concentrate and lump ore from 1.4 Mtpa to 3.2 Mtpa in 2009. The firm is mainly into exploration, development and production of iron ore resources.

According to the statement, subject to further technical analysis, ArcelorMittal would consider investing up to $700 million to increase production to in excess of 10 Mtpa in the medium term.

Meanwhile, ArcelorMittal has reached an agreement with Canada-based Adriana Resources Inc for the development of an iron ore port facility in the state of Rio de Janerio, Brazil.

The steel maker plans to use its share of the port's capacity to export iron ore from the London Mining Brasil mine to its steel facilities in the Atlantic basin, the statement noted.

Commenting on the buyout of the Brazilian iron ore miner, ArcelorMittal's Group Management Board CFO, Mr Aditya Mittal said, “The acquisition of London Mining Brasil along with our investment in MPP - Mineracao Piramide Participacoes Ltda ensures that ou r iron ore base is further diversified in the face of tighter supply for raw materials.” - PTI

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