ArcelorMittal agrees to buy US coal mining group

Tag : Mining Material
Arcelor Mittal, the world's biggest steel producer, said Monday ithad agreed to buy US coal mining group Mid Vol Coal for anundisclosed sum.

Mid Vol, based in Virginia and West Virginia, produced 1.5 milliontonnes of coking coal last year and has reserves of 85 milliontonnes.

"This acquisition further increases our upstream self-sufficiencyin a primary raw material," said finance director Aditya Mittal ina statement.

ArcelorMittal is the biggest buyer of Mid Vol's coking coal, usedto produce coke, which is a key raw material required in thesteel-making process.

The acquisition fits with the company's strategy of buying mininggroups to acquire its own supply of raw materials at a time ofrapidly rising prices.

The company, controlled by Indian-born steel tycoon Lakshmi Mittal,has recently bought stakes in South Africa's Coal of Africa,Australian mining group Macarthur Coal and has bought three minesin Russia.