ArcelorMittal to Spend $4 Billion on Iron Ore Mines.September...

ArcelorMittal to Spend $4 Billion on Iron Ore Mines.

September 16, 2010, Sept. 16 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, plans to spend $4 billion to increase iron-ore production to 100 million metric tons by 2015 as the company seeks to boost its self-sufficiency in raw materials.

ArcelorMittal will expand projects and build mines in West Africa, the Luxembourg-based company said today in an e-mailed statement. It also plans to develop coal assets through joint ventures and is "reviewing opportunities in new frontiers".......(continued)

http://www.businessweek.com/news/2010-09-16/arcelormittal-to-spend-4-billion-on-iron-ore-mines.html

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Friday 17 Sept 2010 - African Aura Mining Inc announced that the government of Liberia has granted a Mineral Development Agreement for the Putu iron ore project.

The MDA was recommended for approval by Liberia's Inter Ministerial Concession Committee to Ms Ellen Johnson Sirleaf president of the Republic of Liberia and was signed on September 3rd 2010. Thereafter the MDA was submitted to the legislature for ratification which occurred on September 9th 2010. The MDA sets the fiscal regime for the development and mining of the Putu iron ore project for a period of twenty five years and is extendable in line with the life of mine.

The principal fiscal terms of the MDA are stabilized for the first fifteen years after completion of the project's definitive feasibility study, thereafter the terms are subject to five yearly reviews. All terms are in accordance with the draft Revenue Code, which is currently under consideration by the legislature of Liberia, with certain concessions in respect of customs fees, tax rate on profits (set at 25%), withholding tax and service charges. The project will also be the subject to a production royalty of 4.5%, based on arms-length sales prices. The MDA also provides for a two year extension of exploration until September 2012.

Overview - Putu , Liberia
Licence: 425 km2
Target: Haematite/Magnetite deposit with potential strike of 12km
Resource: NI 43-101 Inferred resource estimate of 1.07 Bt @ 37.6% Fe from 2.6km of strike
Location: South East Liberia 100km from Atlantic Coast
Status: 4,000m drilling program completed
Current program:27,000m drill programme and airborne survey

Selected results from the 4,000m drilling programme include:
* 63.54% Fe (Haematite) over 63.0m
* 54.21% Fe (Haematite) over 54.6m
* 63.60% Fe (Haematite) over 49.5m
* 39.04% Fe (Fresh Magnetite) over 367.4m