Jul. 7, 2010 (China Knowledge) - ArcelorMittal, the world's largest steelmaker, on Monday said that it has secured regulatory approval form China's National Development Reform Commission to jointly launch an iron and steel project with Chinese steelmaker Hunan Valin Iron and Steel Group Co, sources reported.

ArcelorMittal Spokesman said its partner Hunan Valin has been actively involved in the collaboration with the Chinese government authorities regarding the relevant procedures. The NDRC's approval is part of the procedures.

Upon the completion of the procedures, both parties will negotiate the specific cooperation and will decide on the timetable for the project, said ArcelorMittal.

ArcelorMittal did not indicate the specific site for the project.

ArcelorMittal and Hunan Valin started discussion on the project in 2007.  

Reportedly, the two firms plans to set up a steel plant with a production capacity of 1 million tons. Hunan Valin Steel Co Ltd<000932>, the listed subsidiary of Hunan Valin Group, will hold a 34% stake in the joint venture, while Hunan Valin Group and AcelorMittal would take 33% each.