ArcelorMittal tackles iron mining operations

Jose Francisco Martins Viveiros, executive with ArcelorMittal, is moving from London to assume as president AcerloMittal Serra Azul, the filial that would manage the iron mining operations acquired from London Mining in a US$810mil deal by mid last year. Viveiros mission is to bring iron ore production to supply 70% of the steel major needs. He will manage, in addition to Serra Azul, at Minas Gerais state, the iron and manganese operations of MPP, at Corumba (Mato Grosso do Sul), purchased last August. There are other mining exploration concessions in Bahia state, part of the Brazilian iron assets. Serra Azul should have an output of 5mil m tons of ores in 2009, of which 2.1mil exported to Arcelor's sister companies.

Expansion is tied to the evolution of the iron market and Viveiros keeps an eye in the dry metallic ton unit (DMTU) prices to base investment decisions. He ponders the uptrend in commodity prices was unexpected as well as the downtrend that now starts. Uncertainties are high and there are no tools to measure and predict what the future holds. There are other concerns to flow off Serra Azul ores, one of them is the denial by the Rio de Janeiro authorities, of the project of ArcelorMittal to have its own port terminal at Itacuruca (Sepetiba Bay) in association with Brazore (Adriana Resources). It means exports would continue via the terminal of Vale while alternatives are being sought.

Publication: SABI - Business News
Provider: South American Business Information
February 6, 2009