Reuters reported that steel major ArcelorMittal has expressed interest in raising its majority stake in Bosnia Prijedor iron ore unit by acquiring state owned shares.

Mr Zeljko Kovacevic Serb Republic Industry, Energy and Mining Minister said "ArcelorMittal has sent a letter of intention to acquire the state stake in Ljubija iron ore mines and we are currently reviewing the offer."

ArcelorMittal owns a 51% stake in the Prijedor iron ore unit while majority state owned Ljubija iron ore mines control the remaining stake in the joint venture. The Serb Republic government holds a 70% stake in the Ljubija mines and investment funds and small shareholders control 20% and 10% stake respectively.

Mr Kovacevic said the government has launched preliminary talks with the world top steel maker but the price issue has not yet been put on table. He said the total value of Ljubija mines was estimated at USD 33.4 million.

ArcelorMittal Prijedor located in northwestern Bosnia said last week it would meet its output target of 1,850,000 tonnes of ore for 2011 or 30% up from 2010 even after a railway strike halted production for several weeks.

(Sourced from Reuters)