Luxembourg-based steel giant ArcelorMittal has released the details of its purchase of US coal producers in its annual report.
Accordingly, ArcelorMittal's purchases of US coal producers in 2008 cost a total of $605 million.
According to the company's official annual report, ArcelorMittal paid $491 million for Mid Vol Coal Group, owner of 85 million mt of reserves in West Virginia and Virginia. The deal cost ArcelorMittal $453 million since Mid Vol came with $38 million in cash.
Moreover, ArcelorMittal said it purchased Concept Group and its 57 million mt of reserves for $165 million. Again, Concept Group came with $14 million in cash, reducing ArcelorMittal's outlay.
The deals came amid a flurry of coal acquisitions by steel producers when prices were soaring last year. ArcelorMittal and other steel producers use coking coal to fire blast furnaces.
Furthermore, ArcelorMittal has announced that the final prospectus regarding its €1.25 billion ($1.69 billion) i.e. 7.25 percent bond issue has been published in the electronic database managed by the Luxembourg Stock Exchange under "Regulated Information (OAM)". As previously announced, this issue consists of 61,728,395 bonds with a principal amount of €20.25 ($27.55) per bond due 2014, convertible and/or exchangeable for new and/or existing ArcelorMittal shares.