Global steel company ArcelorMittal is now in talks with Chinese Wuhan Iron & Steel Group to develop overseas mining projects jointly to gain more raw material resources and reduce cost risks.
The world's largest steelmaker, ArcelorMittal has 25 iron ore mines with a production capacity of 51 million tons annually.
It own mines in Canada, US, Brazil and Ukraine. It is also looking at plans in countries like Liberia, Senegal and Mauritania. The company is hoping to expand its annual production to 100 million tons by 2015. In order to do so it is willing to work with Wuhan Iron and Steel on iron ore projects jointly. Wuhan Steel is the third largest steel mill in China.
Peter Kukielski the head of ArcelorMittals' mining sector visited Wuhan Iron and Steel for talks last week. The Wuhan Steel spokesperson Bai Fang said that while the two companies were in discussion nothing had materialized as yet. The shares of WISCO have reacted positively to the developments.
WISCO is also being wooed by iron ore miners from other countries such as Brazil's MMX Mineracao e Metalicos SA and Australia's Centrex Metals Ltd.
ArcelorMittal was formed in 2006 by the merger of Arcelor and Mittal Steel.