ArcelorMittal has signed a five-year agreement with Canada's Evrim Resources to explore for iron ore in Mexico.
Under the terms of the agreement, ArcelorMittal's Mexican unit ArcelorMittal Servicios Minerometalurgicos de Occidente and Evrim will jointly fund iron ore exploration programs in Mexico, Evrim said late Wednesday.
"The development of the discovered deposits will be funded solely by ArcelorMittal, which will thereby earn a 100% interest in such projects, subject to a sliding scale royalty on iron ore production and a separate royalty on all other commodities payable to Evrim", it added.
The parties have agreed to a firm commitment for the first two years of the agreement.
"We look forward to working with ArcelorMittal to find and develop new iron ore deposits for processing at their facilities in Mexico," said Paddy Nicol, chief executive of Evrim in the statement. "This Agreement offers Evrim a unique opportunity to quickly advance projects for long term sustainability."
Evrim Resources is a mineral exploration company with a diverse portfolio of quality gold and copper projects, and a geological database covering Mexico and portions of south western US.
ArcelorMittal has iron ore mines in the US, Brazil, Mexico, Canada, Liberia, Algeria, Bosnia & Herzegovina, Ukraine and Kazakhstan. The company mining business is targeting a production capacity of 84 million mt of iron ore by 2015.
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