Luxembourg-based ArcelorMittal has agreed to sell its coal mines in the Kemerovo region of Siberia, Russia to National Fuel Company.

The sale includes the coal mines of Berezovskaya and Pervomaskaya, which are said to produce 700,000 tons of coal a year.

ArcelorMittal Mining CEO Bill Scotting said: "We are pleased to have agreed the sale to NTK as Kuzbass is an important employer in the region and this offers a sustainable solution for employees and other stakeholders."

The sale comes after a review of operations by ArcelorMittal.

The company said that the Kuzbass coal mines are no longer a strategic asset as its Ukraine steel operations source coking coal from its mines in Kazakhstan.

In 2008, ArcelorMittal purchased the Kuzbass mines to secure coal supplies for its steel operations in Ukraine.