ArcelorMittal, the world's largest steel company, has announced the signing of a joint venture partnership agreement with Mozambique-based Black Gold Mining (Moc) Lda.
Under the terms of the agreement, ArcelorMittal will acquire a 35 percent equity stake in the joint venture company called Rio Minjova Mining and Exploration Company for an initial payment of $2.5 million, having the option to become the majority shareholder in the JV. Meanwhile, Black Gold Mining will transfer its coal licenses to the new JV. The licenses in question cover 49,360 hectares in the Rio Minjova Area situated at the eastern end of the Moatize-Minjova sub-basin in Mozambique's Tete Province.
ArcelorMittal's option to acquire a controlling stake involves a further payment of $2.5 million and the confirmation of proven and probable coking coal reserves.