ArcelorMittal in $2.2 Billion Greenfield Project in Senegal
February 22, 2007
Cleary Gottlieb is representing ArcelorMittal in connection with an integrated mining, infrastructure and industrial project in Senegal, West Africa. This landmark project was signed in Dakar on February 22.
This signing concludes a two-year negotiation process, during which ArcelorMittal faced strong competition from other international mining groups. The project documentation provides for the mining of an estimated 750 million metric tons of rich iron ore reserves in southeastern Senegal, which will require the construction of a mineral port and railroads across the country. In addition, ArcelorMittal will set up a steel-processing facility to meet the demand of the West African market. The exceptional size and complexity of the project called for a tailor-made set of investment and tax and customs incentives combining advantages drawn from the country’s mining code, the investment code and the offshore company law. The closing of the transaction, which will require, among other things, a ratification law, is expected to occur in several weeks.