The price to be paid by ArcelorMittal will be calculated based on MPP's iron-ore and manganese reserves.
The steelmaker wants to increase its upstream integration to limit exposure to rising raw material prices, and also announced last month it would buy US coal miner Concept Group.
“This investment represents a continuing development in our strategy of upstream integration,” said board member responsible for mergers and acquisitions, projects and business development Sudhir Maheshwari.
“Securing supplies of iron ore is an important part of that strategy and will contribute to the future sustainability of our business.”
ArcelorMittal also plans to make additional investments to increase MPP’s iron ore production capacity in the short term, the group said.