Arcelor targets South Africa mine

Maganese is combined with certain kinds of steel to reinforce it

Arcelor Mittal, the world's largest steelmaker, is to develop a manganese mine in South Africa in a bid to secure access to raw materials.

Arcelor Mittal's latest deal is worth $432.5m (£243.8m).

Arcelor Mittal is setting up Kalagadi Manganese in partnership with Kalahari Resources and South Africa's state-run Industrial Development Corporation.

According to drilling tests, the mine is expected to yield sufficient good quality manganese for 20 years.

Arcelor will own a 50% stake in the newly-formed Kalagadi Manganese, set to open in 2010.

When added to certain kinds of steel, manganese helps as a reinforcing material.