Bloomberg reported that ArcelorMittal may jointly invest and acquire mines with China’s Wuhan Iron & Steel Group as rising commodity prices spur mills globally to gain greater control of raw material supplies.

As per report, a list of possible projects may be drawn up soon.

ArcelorMittal will help extend Wuhan Steel’s expansion drive, which has seen the Chinese steelmaker invest in Brazil, purchase iron ore from Venezuela and explore for the commodity in Madagascar. Iron ore and coking coal prices have soared because of rising demand from China.

Wuhan Steel in the statement said that “Other than meeting its own raw material requirements, ArcelorMittal is also seeking long term customers.”

ArcelorMittal plans to expand iron ore production capacity 67% by 2015, raising it to 100 million tonnes from 60 million tonnes. Mr Peter Kukielski head of mining with ArcelorMittal said that it’s looking at expansion plans in countries including Liberia, Senegal and Mauritania.

Wuhan Steel wants to be self sufficient in iron ore supplies in three to five years.

(Sourced from Bloomberg)