Steel Company Arcelormittal Plans Iron Ore Purchases Increased In 2010

Indian steel maker, ArcelorMittal plans to increase purchases of iron ore in 2010. Increased purchases of iron ore in anticipation of shortages of iron ore that will be used to produce metal, special steel production. ArcelorMittal is also trying to increase self-sufficiency in coking coal by 20 percent to 25 percent, from 15 percent.

Lakshmi Mittal, ArcelorMittal's chief executive officer and 41 percent shareholder, has added mining assets in Brazil and Russia since Mittal Steel Co. bought Arcelor SA in 2006 in the steel industry's biggest takeover. Strategies to increase the supply of raw materials, which helps ArcelorMittal swollen debt of $ 32.5 billion in 2008, maybe next year can be maintained as iron ore and coking coal prices.

Service request by iron ore producers

Brazil's Vale SA, the largest iron ore producers, Australia's BHP Billiton Ltd. and London-based Rio Tinto Group contributed 68.5 per cent of iron ore transported by sea, according to World Steel Association based Brussels.

BHP and Rio agree earlier this month to detail their proposed 50-50 joint venture to combine the iron ore mines, railways, ports and labor in the Pilbara region of Western Australia, saving at least $ 10 billion per year. The plan faces regulatory presumption against including the European Commission and the Australian Competition & Consumer Commission.

ArcelorMittal produces 37.1 million metric tons of iron ore in the first nine months of 2009. This iron ore has projects in countries including Brazil, Liberia and Senegal.