The world's number one steelmaker ArcelorMittal has announced the signing of a memorandum of understanding (MoU) with the Republic of Mozambique - a move which the company says will allow for the strengthening of economic growth and the furthering of the development of the steel industry and mining sector in the Republic of Mozambique.
The MoU aims to boost cooperation between ArcelorMittal and the Republic of Mozambique through the development of certain synergies and further investment in the primary and downstream steel industries, as well as in the mining of raw materials in the form of iron ore and coal, in particular metallurgical coal. As for the downstream operations, ArcelorMittal is considering the construction of a new bar rolling mill which will have an annual production capacity of 400,000 mt.
Commenting on the MoU, member of the group management board, responsible for Asia and Africa, mining, stainless at ArcelorMittal, Malay Mukherjee, said, "We are delighted to have signed this MoU with Mozambique. This is not only an important step in our strategy of developing Southern Africa as an important and competitive hub in the regional and international market; it also has the potential to become a major contributor to the economy of Mozambique."