Lakshmi Mittal to sign over controlling stake in Algerian assets
ArcelorMittal ceo Lakshmi Mittal was set to sign over a controlling stake in its Algerian assets to the national government on Saturday October 5, a source close to the company told Steel First on Friday October 4.
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The sale of the 21% stake to state-owned producer Sider will make the government majority stakeholder of the Annaba steelmaking assets and the two Tebessa iron ore mines at Ouenza and Boukhadra.
Just 15% of domestic Algerian demand is being met by local producers, one of the key drivers behind the decision to double crude steel production at the Annaba steel plant at El Hadjar, Steel First has learned.
As ArcelorMitttal will now be a minority shareholder at 49%, the Algerian business will no longer be included in the company’s financial results, the source said. However, ArcelorMittal will continue to manage day-to-day operations.
The Annaba plant is on track to produce 1 million tonnes per year in 2013. ArcelorMittal plans to increase production to 2.2 million by 2017.
ArcelorMittal confirmed the sale of the stake on September 30.