Mittal plans to acquire coal mines in Australia and Russia

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jun 2008

After his successful acquisitions of steel mills and emerging as the CEO of ArcelorMittal, world's largest steel producer, Indian-born steel tycoon Lakshmi Mittal is mulling to secure deposits of coal and iron ore to meet the company's demand. Mittal is in talks to acquire coal mines in Australia and Russia, while expansion elsewhere means that ArcelorMittal now meets 45 per cent of its iron ore requirements from its own supplies, The Obsever reported on Sunday. 58-year-old Mittal, with an estimated fortune of USD 30 billion, has also invested in shipping and rail to cut transport costs.
"The only part of the supply chain that remains outside his control is oil and gas, an area, perhaps, that could attract his attention before too long," the report said.
The report said the creation of ArcelorMittal, the biggest steel company in world and now worth over 100 billion pounds, could not have come at a better time: the new group launched into a worldwide commodities boom that has seen steel prices rocket from USD 240 a tonne in 2002 to USD 1,000 today.
The company was the first to produce more than 100 million tonnes of steel a year; that could double in a few years as Mittal goes on another buying spree, extending his empire to Africa, Australia and China.
Today, ArcelorMittal employs 300,000 people in 60 countries, but accounts for only 10 per cent of global output, so it could grow much bigger before attracting the attention of the anti-trust authorities. "Certainly, there is the opportunity to grow," Mittal said recently. "To what size? You could go up to 150 to 200 million tonnes a year."

Source: PTI