Global steel player ArcelorMittal has increased its stake in Australia's Macarthur Coal to 19.9 per cent through purchase of a further 5 per cent stake from Talbot Group Holdings, a company owned by Ken Talbot, the largest shareholder in Macarthur.

Brisbane-based Macarthur is the world's biggest producer of pulverized coal, which is used in making steel.

The shares were purchased at Australian $20 each, bringing ArcelorMittal's total investment in Macarthur Coal to A$843 million.    

The latest acquisition of this holding is in line with the ArcelorMittal's strategy to secure supply of raw materials. However, the purchase is subject to Foreign Investment Review Board approval.

In a separate release, South Korean company POSCO, agreed to pay about A$424mn (US$408mn) for a 10% stake.

Under the deal, POSCO will pay A$20 per share pending board approval in July. The company purchased the stake from individual shareholder and founder Ken Talbot.