Wuhan Steel, ArcelorMittal discuss iron ore tie-ups

SHANGHAI, Aug 16 (BestGrowthStock) – China’s Wuhan Iron and Steel
Group is in talks with ArcelorMittal (MT.N: ), the world’s top
steelmaker, on the joint development of overseas iron ore,
according to a statement released on Monday.

The two sides are currently discussing joint exploration and
investment in two overseas mining projects, said the Chinese
company, the parent of the listed Wuhan Iron & Steel (600005.SS: ).

ArcelorMittal has a total iron ore production capacity of 51
million tonnes per year, and aims to raise that to 100 million
tonnes over next five years, the statement said.

Wuhan Iron & Steel Group has sought to develop overseas iron
ore resources to reduce its heavy reliance on the three major
global suppliers — Rio Tinto (RIO.AX: ), Vale (VALE5.SA: ) and BHP
Billiton (BHP.AX: )(BLT.L: ).

The company said earlier this year that it aims to become
entirely self-sufficient in iron ore within three to five years,
and already lays claim to around 3 billion tonnes of overseas ore
reserves.

It bought a 21.52 percent stake in Brazilian miner MMX
(MMXM3.SA: ) late last year in a deal that also included a 20-year
iron ore supply contract set at an acceptable “China price”
[ID:nSGE627011].
(Reporting by Ruby Lian and David Stanway; Editing by Jacqueline
Wong)

Wuhan Steel, ArcelorMittal discuss iron ore tie-ups