Arcelor Mittal Secures 500 Million Ton Liberian Iron Ore Source

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Researched by Industrial Info Resources (Sugar Land, Texas). After an arduous negotiations and permitting process, which began in 2005, the world’s largest steel company, Arcelor Mittal (AM) (NYSE:MT) (Rotterdam, Netherlands), has had its $1 billion iron ore project in Liberia ratified by the country’s Senate.

At the end of 2006, AM signed an agreement with the Liberian government to develop the ore resources which had originally been mined by Liberian American Mining before civil war led the closing down of the operation. The war ended in 2003.

The steel company will now have an estimated reserve of 500 million tons of iron ore available to supply its steel plants around the world. The new agreement, negotiated with Liberia’s President Ellen Johnson Sirleaf, will give AM a 25 year mining concession and access to the port of Buchanan on the west African coast and a rail line to transport the mined ore.

Under the agreement AM will also provide annual development assistance of $3 million to the three counties where mining operations will take place. When mining operations are fully developed by 2010/11 the project will have created about 3,500 direct jobs and up to 20,000 indirect jobs in the country which is striving to restore its economy and social fabric. AM is currently assessing the project in Liberia and work on the upgrading of existing facilities. Roads and infrastructure will begin on site this year.

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