Luxembourg-based steelmaker ArcelorMittal has made its formal entry into Argentina’s mining sector through the establishment of a new wholly-owned subsidiary, expanding its activities beyond steel production in the country.
New mining subsidiary established in Argentina
According to local media reports, the company has created ArcelorMittal Mining Argentina SAU to advance activities in the exploration, extraction, processing and marketing of minerals and related by-products. The reports indicate that the move is aimed at analyzing and taking advantage of the opportunities offered by Argentina.
In Argentina, ArcelorMittal controls Acindar, one of the country’s leading steel producers and the operator of a steel plant located in Villa Constitución, Santa Fe. It has been noted that Acindar is operating under challenging conditions due to the slowdown in domestic economic activity, particularly in the industrial and construction sectors. This environment has led to periodic adjustments in production levels at the Villa Constitución facility.
ArcelorMittal evaluates alternatives to steel
The decision to enter the mining business comes amid tensions in a highly competitive global steel market, marked by China’s dominant position as the world’s largest steel producer. At the same time, Argentine manufacturers have voiced criticism over the growing use of imported steel in public tenders. Within this context, entering the mining sector is seen as an alternative growth avenue, especially as the Argentine mining industry has shown strong momentum, with exports reaching $6 billion last year, as cited by local media.
Until now, ArcelorMittal’s involvement in Argentina’s mining sector had been indirect, mainly through the supply of mining inputs such as steel bars and grinding balls used in mineral processing.