ArcelorMittal aims to boost output 66 pct

By Eric Onstad

MONTE CARLO (Reuters) - ArcelorMittal, the world's biggest steel producer, aims to boost output by two-thirds to 200 million tonnes in the long-term, an executive said on Tuesday.

The group wants to achieve the target compared to forecast steel production of 120 million tonnes in 2008, Yves Koeberle said on the sidelines of the Metal Bulletin Iron Ore Symposium in Monte Carlo.

The target has no time frame as yet, but around 30 million tonnes of the expansion is already planned to come from brownfields expansions, Koeberle, general manager for iron ore, told Reuters.

Brownfields are generally defined as abandoned or underused industrial or commercial properties where redevelopment is complicated by actual or perceived environmental issues.

"We've already identified a greenfield project in India," he told Reuters following the presentation, adding that there also were prospects for new plants in China and elsewhere in Asia.

ArcelorMittal uses 150 million tonnes a year of iron ore for its steel plants, accounting for 10 percent of world consumption.

The group buys from 60 suppliers, but it has also said it is seeking to boost self-sufficiency in iron ore to over 70 percent from 45 percent currently to protect itself against price hikes.

Contract prices jumped by 65-71 percent this year due to strong demand from China, which needs steel for its infrastructure projects, and spot prices have soared even higher.