Mumbai: ArcelorMittal SA, the world's largest steel maker, has signed a deal with Brazilian miner Companhia Vale do Rio Doce (Vale) under which its plants in Europe, Africa and the Americas would get 489 million tonnes of iron ore and pellets over a 10-year period.

ArcelorMittal did not disclose the value of the the ''world's largest-ever deal between a steel company and an iron ore supplier.'' 

ArcelorMittal, which accounts for around 10 per cent of global steel output, is trying to supply three quarters of its own iron ore, up from 45 per cent at present, as it ramps up steel production, said board member Davinder Chugh.

He blamed the recent steel price spikes to expensive iron ore contracts and said ArcelorMittal is seeking to develop its own mining and energy projects to shield it from higher commodity prices.

Vale, the world's largest iron ore miner, had struck a deal with six Asian steel makers in February to raise iron ore prices by 65 per cent.

Steel makers also expect a proposed acquisition of Rino Tinto Plc by rival BHP Billiton Ltd to affect prices as it may lower competition by shrinking the number of major iron producers from three to two.

ArcelorMittal, the world's number one steel company, with 310,000 employees in more than 60 countries, is a leader in all major global markets, including automotive, construction, household appliances and packaging and technology, and have sizeable captive supplies of raw materials.

With presence in 28 European, Asian, African and American countries, it   has exposure to all the key steel markets, from emerging to mature.

ArcelorMittal reported $105.2 billion in 2007 revenues, with a crude steel production of 116 million tonnes.