Mittal looks to liberate Liberian ore
Rotterdam-based steel giant Mittal Steel announced today that it signed a deal to develop iron ore mines in Liberia. As previously reported by SteelOrbis, Mittal Steel originally announced plans to invest in Liberia in April 2005. The Liberia deal will give Mittal Steel access to 1 billion tons of iron ore reserves, a boon to a company concerned by the rising prices of raw materials. The company plans to invest $900 million during the life span of the project. The money will be used to develop the mines, improve the railway and port infrastructure, and fund community development. The total life span of the project is expected to be between 25 and 30 years. Although the company meets 40 percent of its iron ore requirement from captive mines, Mittal Steel intends to reduce its dependence on iron ore imports through this deal. The completion of the agreement is still subject to the approval of the Liberian Senate.