Mittal to invest 2.2 billion dollars in Senegal

The global steel giant Arcelor Mittal has said on Friday that it intended to invest 2.2 billion dollars (1.69 billion euros) in developing an iron mine and infrastructure in Senegal, considering West Africa to be a major centre for its mineral supplies.

The investment plan covers development of a mine near Faleme in the south east of the country, the construction of a port near Dakar and the development of about 750 kilometres (470 miles) of rail infrastructure to link the mine to the port.

The mine would begin production in 2011 and would have an annual capacity of 15-25 million tonnes.

Arcelor Mittal also said that it was also considering investing in steel-making facilities in the country.

An agreement for the investments, signed with authorities in Senegal on Thursday, would take effect once certain formalities had been completed, company chairman Lakshmi Mittal said.

The investment was an important step in the group's strategy of making West Africa a major pole of iron ore supplies.

The company also intended to make Senegal a strategic point for extension of it presence on growing markets in West Africa.

In 2005, Mittal Steel, before it acquired Arcelor, signed an agreement for access to iron ore resources in Liberia.

But the contract was criticised by non-governmental organisation Global Witness. Liberian President Ellen Johnson Sirleaf said after her election in November 2005 that she would re-negotiate contracts signed by the previous administration and considered disadvantageous, and she did so with regard to the contract with Mittal Steel.

In Liberia, Arcelor Mittal is to invest nearly one billion dollars and will have access for 25 years to one billion cubic metres of iron ore in the west of the country.

(AFP)