World’s largest steel maker ArcelorMittal and mineral giant BHP Billiton are in initial talks to combine their iron ore interests in two African countries- Liberia and Guinea- into a joint venture.
“ArcelorMittal announces it has entered into initial discussions with BHP Billiton to potentially combine our respective iron ore mining and infrastructure interests in Liberia and Guinea within a joint venture,” ArcelorMittal said in an emailed statement from Luxembourg.
Australia’s BHP Billiton confirmed the development in a separate emailed statement.
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“The iron ore interests of the two companies in Liberia and in Guinea are proximate and could be significantly more competitive if brought together in a combined operation,” ArcelorMittal added.
Over the next few months, both the firms would assess the merits of potential JV and will work with governments of Liberia and Guinea to seek their support.
“The partners will continue to assess the merits of a potential JV and will work with the respective governments of Liberia and Guinea to seek their support. It is anticipated that this will take several months,” BHP Billiton added.
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The financial details of the proposed JV could not be immediately ascertained. ArcelorMittal possess huge captive reserves of iron ore across the globe. BHP Billiton is a leading producer of ferrous and non-ferrous minerals.