LONDON ArcelorMittal chief executive officer Lakshmi Mittal is scheduled to sign over a controlling stake in its Algerian assets to the national government on Oct. 5, a source close to the company told AMM sister publication Steel First.
The sale of the 21-percent stake to state-owned producer Sider will make the government the majority stakeholder of the Annaba steelmaking assets and the two Tebessa iron ore mines at Ouenza and Boukhadra.
As ArcelorMitttal will now be a minority shareholder at 49 percent, the Algerian business will no longer be included in the companys financial results, the source said, although ArcelorMittal will continue to manage day-to-day operations.
Just 15 percent 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.
The Annaba plant is on track to produce 1 million tonnes this year. ArcelorMittal plans to increase annual production to 2.2 million tonnes by 2017.
A version of this article was first published by AMM sister publication Steel First.