Global steel giant ArcelorMittal has expressed its interest in increasing its majority stake in its Bosnia-based Prijedor iron ore unit by acquiring state-owned shares, the Bosnian Serb Republic's Industry, Energy and Mining Minister Zeljko Kovacevic has stated.
"ArcelorMittal has sent a letter of intention to acquire the state's stake in Ljubija iron ore mines and we are currently reviewing the offer," Mr. Kovacevic said, as reported by Reuters.
ArcelorMittal owns a 51 percent stake in the Prijedor iron ore unit, while majority state-owned Ljubija iron ore mines control the remaining stake in the joint venture. The Serb Republic government holds a 70 percent stake in the Ljubija mines and investment funds and small shareholders control 20 percent and 10 percent stake, respectively.
Kovacevic said the government has launched preliminary talks with the world's top steel maker but the price issue has not yet been put on table. He said the total value of Ljubija mines was estimated at 50 million Bosnian marka ($33.4 million).
ArcelorMittal Prijedor, located in northwestern Bosnia, said last week it would meet its output target of 1,850,000 metric tons of ore for 2011, or 30 percent up from 2010, even after a railway strike halted production for several weeks.