ArcelorMittal X BHP Billiton = Railroad to the Atlantic

In the Story below keep in mind BHP is finally getting what it has been waiting for years (we will follow with the history later this week) to acquire. The question is do the people of Liberia get a fair share?!

EarlyBird


BHP, Arcelor in alliance talks over West Africa
Andrea Hotter
The Australian
January 20, 2010 12:00AM

STEEL giant ArcelorMittal and miner BHP Billiton are discussing combining their iron ore interests in Liberia and Guinea, creating a platform for a West African iron ore business.

The assets include BHP's 43.5 per cent interest in Guinea's Euronimba, which owns 95 per cent of the Nimba project, including exploration leases at Dieke and Nimba North, as well as the miner's four Liberian leases.

Also at stake is ArcelorMittal's 70 per cent interest in five Liberian leases and rights to upgrade Liberia's Yekepa-Buchanan railway and Panamax port.

Talks to combine the assets were expected to take several months, and the companies were seeking the support of the west African governments, BHP said.

"At this stage it is premature to comment on the nature of the overall investment. We are at early stage of reviewing the opportunities and development options," a BHP spokeswoman said.

Mining companies have had a rough ride in Guinea since the death of longtime dictator Lansana Conte in December 2008.

Junta chief Captain Moussa Dadis Camara seized power but the self-appointed president's behaviour became increasingly autocratic.

Holding negotiations with international mining companies live on national television, he threatened to close mines and confiscate projects.

The country now has an interim leader, General Sekouba Konate, after Dadis fled following an assassination attempt.

Dow Jones Newswires

Liberia's Biggest Ever Mining Concession Agreement

IN THE NEWS

Chinese mining firm to begin operations in Liberia soon
African Press Agency
15:35:44

APA-Monrovia (Liberia) The Chinese company, China Union, which earlier this year signed a US$2.5 billion mining concession agreement with the government of Liberia has assured the Liberian people that it would still go ahead with its operations in the country, despite the global financial crisis that has slowed down the company’s operations.

Presidential Press secretary Cyrus Badio told reporters Tuesday that China Union assured that it would begin full-scale operations shortly, now that there are positive indications that it is overcoming the negative effects of the global financial crisis.

Addressing reporters on the China Union and Arcelor Mittal Concession agreements, Badio admitted that the effect of the economic meltdown to some extent affected the company’s operations.

He however added the Chinese company has informed the Liberian government that it has begun to overcome the effects of the global financial meltdown.

Following the signing of the multi-billion dollar mineral agreement with the Liberian government, China Union began dragging its feet in executing the terms of the agreement, including delays in paying a US$45 million signature fee to the Liberian government.

Chinese Ambassador to Liberia, Zhou Yuxiao admitted that the company was dragging its feet because it was adversely affected by the global financial crisis.

TSS/ad/APA
2009-11-04

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Acelor Mittal gives Legislators 100 vehicles

Thanks a lot Acelor Mittal. The Legislature receives the gift and the people get stiffed.

Then again the audacity of our Legislators is astounding, testing the vehicles by taking a rides in "their" brand new Mitsubishi pickups in the compound of the Capital building. As far as we can tell, not one of our lawmakers turned the gift back. Have they no shame at all.

The acceptance of the vehicles by the lawmakers has raised concerns in the public given the direct source of the donation, Acelor Mittal. Some legislative analysts believe the donation by Acelor Mittal is an indirect form of inducement for future help to the Company.

The credibility gap is growing and the faint whisper of "growth without development" is growing louder.

The people deserve better.

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Anthropogenicagent

Bit by Bit it Will Fit - ArcelorMittal / Rio Tinto

The other proverbial Shoe has dropped (See the Article that follows) and it is natural fit! They may be talking eastern Canada, but we are hearing eastern Guinea. The Canada program to expand mining and processing facilities in Labrador West and transportation capacity on the railway linking the mine with the port of Sept- Iles, Quebec will be a great trial run for Guinea-Liberia operations.

When (if) the Simandou project merges with the Liberia Operation across the border it will mean only one thing.... You will no longer have to travel to Guinea. It will come to you piece by piece, by rail through your back yard.

We may observe the full dress rehearsal in Canada but how about a little transparency now?

{article}

ArcelorMittal Says Rio Tinto's IOC Unit Would Be `Natural Fit'
By Dale Crofts
July 2 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, said it would be interested in acquiring Rio Tinto Group's Iron Ore Co. of Canada unit because the business fits with its operations in eastern Canada.


``If that kind of opportunity arose, I'm sure we'd take a look at it,'' Lou Schorsch, head of Luxembourg-based ArcelorMittal's flat-rolled business in the Americas, said yesterday in an interview in Chicago. ``That would kind of be a natural fit. We share a lot of infrastructure.''
ArcelorMittal is buying iron-ore plants in Canada and Liberia to counter the market power of BHP Billiton Ltd., Rio Tinto and Cia. Vale do Rio Doce. The three companies control about 80 percent of the world's seaborne iron ore and are raising prices to records. London-based Rio Tinto has said it plans to sell as much as $10 billion of assets this year.


Iron Ore Co. of Canada, also known as IOC, is ``a good operation and not on our short list of possible disposals,'' Rio spokesman Nick Cobban said today.


ArcelorMittal said in September it would buy the more than two-thirds of the Wabush Mines iron-ore venture in Canada that it doesn't already own from U.S. Steel Corp. and Cleveland-Cliffs Inc. for about $67 million. U.S. Steel and Cleveland-Cliffs ended talks to sell the stake in March, and ArcelorMittal has asked the Ontario Superior Court to force the transaction. ArcelorMittal is

``very confident'' it will complete the purchase, Schorsch said.


Wabush produces iron-ore concentrate in Newfoundland and Labrador and has port facilities on the St. Lawrence River's north shore, close to the operations of ArcelorMittal's QCM unit.
``Part of why we are interested in Wabush is because QCM is more or less right down the road,'' Schorsch said. ``Also right down the road is IOC that Rio Tinto owns.''


Rio holds a 59 percent stake in Iron Ore Co. and operates the business. Rio is spending about $475 million to expand mining and processing facilities in Labrador West and transportation capacity on the railway linking the mine with the port of Sept- Iles, Quebec.


To contact the reporter on this story: Dale Crofts in Chicago at dcrofts@bloomberg.net.
Last Updated: July 2, 2008 09:54 EDT


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Anthropogenicagent