ArcelorMittal, BHP Billiton terminate iron ore JV in Africa

NEW DELHI: Global steel major ArcelorMittal today said it is terminating talks with mineral giant BHP Billiton to combine their iron ore interests in two African countries, Liberia and Guinea.

The plans for a joint venture were dropped after the companies failed to reach a commercial agreement.

"ArcelorMittal and BHP Billiton today jointly announced that they have ended preliminary discussions to combine the two companies' iron ore mining and infrastructure interests in Liberia and Guinea into a single joint venture," ArcelorMittal said in an email statement from Luxembourg today.

It said it will continue to develop its operations and iron ore interests in Liberia independently and is excited by the potential of this business.

"The first phase of the project is under construction with Direct Shipping Ore (DSO) production expected in the second half of 2011," it added.

The company, along with the Australian mining major, had announced in January that their iron ore interests in Liberia and Guinea were proximate and "could be significantly more competitive if brought together in a combined operation."

ArcelorMittal possess huge captive reserves of iron ore across the globe, while BHP Billiton is a leading producer of ferrous and non-ferrous minerals.