Arcelor Mittal eyes Russian coal deposits

Moscow, Sep 23: Desperately seeking coal deposits around the world, steel giant Arcelor Mittal is set to re-enter the Russian market with an eye to acquire the Yakutian coal assets which will be auctioned on October 5.

Currently, the world's largest steel company with a 10 per cent of the world steel market is running short of coal assets. It had applied for a licence for a coal deposit in India in August.

Prior to the bid, Arcelor Mittal will have to find a local partner or establish its own structure in Russia to take part in the tender, Russian leading business daily Kommersant reported.

The Yakutian government has confirmed that the law firm of Baker&MacKenzie is preparing documents for the tender on the behalf of Arcelor Mittal.

In a single lot, 68.68 per cent of OAO Elgaugol, 75 per cent minus one share in OAO Yakutugol and the 320 km long unfinished Ulak-Elga rail line will be auctioned.

Recently, the company withdrew from two joint projects with Severstal in Russia. It is represented in Ukraine with OAO Mittal Steel Krivoi Rog and in Kazakhstan with Mittal Steel Temirtau.

Arcelor Mittal receipts in 2006 totalled 88 billion dollars and profits 14 billion dollars.

UNI