The world's largest steelmaker ArcelorMittal's Brazillian division ArcelorMittal Brasil is resuming management of the Mina do Andrade iron mine leased to leading global iron ore producer Vale in 2004, both companies have confirmed though with different explanations, according to news sources.
ArcelorMittal said that it is taking over the business since soaring iron ore prices make it increasingly attractive, whereas Vale said that it canceled the lease because its development costs were too high and its potential was lower than expected. ArcelorMittal also stated that it had been gradually taking over the mine since last November.
The mine is located 10 km from Joao Monlevade in Minas Gerais state, Brazil, and has an annual production capacity of 1.4 million mt. Vale had paid $10 million and made all royalty mineral payments as of 2008 to rent the mine, sources said.