Luxembourg-based ArcelorMittal (MT: Quote) plans to increase output of iron ore, a key ingredient for making steel, in Brazil by about 65 percent in 2013, Bloomberg reported quoting Sebastiao Costa Filho, the firm's mining business chief in Brazil.
The move is aimed at enhancing the steel giant's self efficiency of the ingredient as demand for steel increases with growth in emerging economies. Since iron ore is the major ingredient for steel, the recent price increases for it have led to escalating production costs for steel companies.
The company intends to increase output in Brazil to 7.1 million metric tons in 2013 from the estimated production of 4.3 million metric tons in 2012. ArcelorMittal is investing $125 million in the country to expand its iron ore mines.
The company targets production of 100 million metric tons by 2015, compared to 54 million tons produced in 2011, and is looking at Canada, Brazil and Liberia to achieve this. The company is also seeking port concession in Rio de Janeiro as access to a terminal will help it send iron ore abroad.
MT closed on Friday at $20.76, up $0.16, on a volume of 4.98 million shares.
by RTT Staff Writer
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