The world's largest steelmaker Arcelor Mittal today announced the signing of several agreements with
Senegal in order to develop
iron ore mining in the Faleme region of southeast
Senegal.
In line with the agreement, Arcelor Mittal will invest around $2.2 billion in the project, which will cover the development of the mine, the building of a new port near Dakar and the development of approximately 750 km of rail infrastructure to link the mine with the port.
The company stated that its Senegalese investment has total estimated reserves of about 750 million tons in four locations in the Faleme region, comprising both haemetite and magnetite deposits. The mine is expected to commence
production in 2011.
Commenting on the agreements, Mr.Lakshmi N. Mittal, president and CEO of Arcelor Mittal, said, “This project is an important step in our strategy of creating West
Africa as a mining hub for
iron ore supplies to our steel plants around the world. We are confident
Senegal will prove to be a strategic location to extend our existing footprint in the promising West African markets.”