BHP, ArcelorMittal scrap plan to combine West Africa iron-ore assets

By: Chanel de Bruyn

Published: 8th September 2010

JOHANNESBURG (miningweekly.com) – Diversified miner BHP Billiton and steel group ArcelorMittal have dropped plans to merge their iron-ore interests in Liberia and Guinea into a joint venture.

The two companies announced on Wednesday that they were unable to reach a commercial agreement.

The parties said in January that they had entered into initial discussions to merge their Liberian and Guinean iron-ore mining and infrastructure interests.

At the time, ArcelorMittal said that the combined operations could become significantly more competitive than before.

BHP Billiton has been exploring in Liberia since 2005, and has concluded a minerals development agreement with the Liberian government in relation to four major iron-ore leases earlier this year.

The diversified miner’s Liberian leases were all proximate to the existing 25-km long corridor that runs from the Guinean border to the Liberian coast.

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