BRUSSELS, Belgium (AP) -- ArcelorMittal SA, the world's biggest steel maker, said Tuesday it has signed a deal to buy iron ore from Brazilian miner Vale for the next 10 years.
It did not say how much it would pay Vale to buy 480 million metric tons (529 million tons) of iron ore and pellets to supply ArcelorMittal steel plants, but called it the world's largest-ever deal between a steel company and an iron ore supplier.
ArcelorMittal controls 10 percent of global steel output and is much larger than its nearest rivals.
ArcelorMittal board member Davinder Chugh said the agreement was an important one for the company as it ramps up steel output and tries to supply three quarters of its own iron ore -- up from 45 percent at present.
''It ensures that we have the required levels of iron ore to operate our steel plants fully in line with current global demand,'' he said.
ArcelorMittal has blamed more expensive iron ore contracts for steel price increases in recent months as it seeks to develop its own mining and energy projects to shield it from higher commodity prices.
Companhia Vale do Rio Doce, the world's largest iron ore miner, struck a deal with six Asian steel makers in February to raise iron ore prices by 65 percent.
Miner BHP Billiton Ltd.'s bid for rival Rio Tinto PLC also could affect prices because it may lower competition by shrinking the number of major iron producers from three to two.
