Millennium Finance Corporation, the investment banking subsidiary of Dubai Islamic Bank, is the sole advisor to ArcelorMittal for its US$2.2 billion project, which is one of the largest non-oil sector commitment in West Africa.
The project is an integrated mining initiative and will encompass the development of the mine, the building of a new port in Bargny near Dakar and the development of approximately 750 km of rail infrastructure to link the mine with the port. Upon completion, the project will produce 25 million tons per year of high grade iron ore and is expected to provide up to 10,000 jobs to Senegalese citizens. The total estimated reserves are approximately 750m tonnes in 4 locations in the Faleme region, comprising both hematite and magnetite deposits. The mine is expected to commence production in 2011.
The concessions were granted following the conclusion of agreements between ArcelorMittal and the Republic of Senegal on February 21, 2007.
ArcelorMittal has pledged its support to the community and the people of Senegal as part of its commitment to Corporate Social Responsibility in the countries in which it operates.
Commenting, Mr.Lakshmi N. Mittal, President and CEO, ArcelorMittal said:
“We are pleased to have been granted the concessions and are now eager to swiftly move forward with this project. The Faleme project will not only prove to be an important and competitive source of iron ore supplies for our international plants but a notable contribution to the economy of Senegal.”
He added; “This is an important step in our strategy of creating West Africa as a mining hub for iron ore supplies to our steel plants around the world. We are confident Senegal will prove to be a strategic location to extend our existing footprint in West Africa.”
Commenting, Mr. Keba Keinde, CEO, Millennium Finance Corporation said: “We are pleased to have successfully advised ArcelorMittal on this milestone transaction that will create substantial value for our Client and for Senegal. This transaction is consistent with our core objectives of value creation throughout the Middle East, Africa and Asia, through origination and execution of large and highly strategic transactions for leading public and private institutions.”
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