December 02, 2008

Metalloinvest and ArcelorMittal ink 5 year iron ore deal

It is reported that Metalloinvest, a group of Russian metallurgical companies, has signed a deal to supply iron ore products to the ArcelorMittal for five years. Metalloinvest under the contract will supply up to 10 million tonnes of iron nuggets and iron ore concentrate to ArcelorMittal's plants based in Eastern Europe and Kazakhstan.

Mr Maxim Gubiev GD of Metalloinvest said that the contract supplies will cover a fourth of all iron ore raw produced by enterprises of the holding but the deliveries to domestic market would not be affected. Given the overall growth of production, the share ratio of export deliveries to domestic ones won’t change materially, up to 55% of the overall.”

Metalloinvest output of this product is estimated at 36 million tonnes this year.

Metalloinvest is also reported to be in talks over new contracts with a number of large sized partners including US Steel.