The world's largest steelmaker ArcelorMittal announced today, Tuesday, the signing of long-term contracts with Brazilian iron ore giant Vale (Companhia Vale do Rio Doce) for the supply of iron ore and pellets to its plants in Europe, Africa and America.
Under the scope of the agreement, Vale will supply approximately 480 million metric tons of iron ore and pellets to ArcelorMittal. The contracts in question, which cover the next ten years, constitute the largest-ever iron ore supply deal between a steel company and an iron ore miner.
Commenting on the deal, ArcelorMittal Group Management Board Member Mr Davinder Chugh, said; "This is an important agreement for ArcelorMittal as it ensures that we have the required levels of iron ore to operate our steel plants fully in line with current global demand. Additionally, the company has 45 percent captive iron ore self-sufficiency, with plans to increase this further to 75 percent."