From correspondents in Luxembourg, Luxembourg, 08:01 PM IST

ArcelorMittal, the world's leading steel company, said Monday it has signed an agreement to acquire 49 percent of the share capital in Brazilian mining company Mineracao Piramide Participacoes (MPP).

MPP, based in Corumba in the state of Mato Grosso do Sul, focuses on the exploration and development of iron ore and manganese reserves in the region.

ArcelorMittal said the price is yet to be assessed but added it plans to make additional investments to increase MPP's iron ore production capacity in the short term.

"This investment represents a continuing development in our strategy of upstream integration,' said Sudhir Maheshwari, ArcelorMittal board member responsible for merger and acquisition, project and business development.

'Securing supplies of iron ore is an important part of that strategy and will contribute to the future sustainability of our business," he added.

ArcelorMittal has operations in more than 60 countries, employing over 320,000 people.

(Staff Writer, © IANS)