ArcelorMittal signs MoU with Mauritania

ArcelorMittal announces that it has signed a Memorandum of
Understanding (Mou) with Societe Nationale Industrielle et Miniere (SNIM), Mauritania, on the December 26, 2007, the company siad in the release.

Under the MoU, ArcelorMittal and SNIM will jointly develop a large iron ore mining project, using the El Agareb Iron ore resource in Mauritania, which is estimated to contain more than 1 billion tonnes rich grade of Magnetite resource.

In the first phase of project development, ArcelorMittal will conduct exploratory works and a feasibility study. Onward project execution will be progressed by a Joint Venture Company to be created between SNIM and ArcelorMittal.

At the exploratory and prospecting stage, ArcelorMittal's share will be 30 per cent with an option to increase the stake to 70 per cent once project execution starts. Subject to the feasibility study, ArcelorMittal intends to develop a 25 Million tonnes per year mine.

Aditya Mittal, CFO and member of ArcelorMittal’s Group Management Board, said:
“Mauritania’s strategic location in West Africa makes it an ideal choice for iron ore supplies to
ArcelorMittal’s European steel mills. This large iron ore project would further strengthen our existing presence in the region and will create substantial employment opportunities for the people of Mauritania while accelerating growth in Mauritanian economy.”

SNIM is one of the oldest Iron ore producing companies in Africa, producing more than 12 million
tonnes per year of iron ore with world class production facilities and infrastructure. ArcelorMittal, the world’s largest steel company, is one of the oldest consumers of SNIM’s iron ore, having been a customer for more than two decades.