Steel magnate Lakshmi Mittal, has expressed interest into buying Bulgaria's ailing steelmaker Kremikovtzi KMKV.BB, Bulgaria's economy and energy minister said on Sunday.

Petar Dimitrov said Mittal, chief executive of world's largest steelmaker ArcelorMittal, has sent a letter to the Bulgarian prime minister to express his interest in the mill, which is majority owned by his brother, Pramod Mittal, Reuters said.

"Lakshmi Mittal says in his letter the mill represents a strategic interest to him and that he is ready to carry out all necessary environmental upgrades," state news agency BTA quoted Dimitrov as saying during his visit to the city of Varna.

Dimitrov repeated that a similar letter had also been sent by Ukrainian billionaire Kostyantin Zhevago who controls 73 percent in London-listed Ukrainian iron ore producer, Ferrexpo which has the world's forth-biggest ore resource.

Another Ukrainian, Rinat Akhmetov, owner of metallurgic firm Metinvest, along with U.S. Steel Corp are vying for the mill, Kremikovtzi has said.

Last week, Dimitrov said there were five suitors for the plant, but he did not name them.

Bulgarian media has reported Turkish steelmaker Erdemir EREGL.IS and Swiss Duferco Group were also vying for the plant.

Pramod Mittal, who bought 71 percent in the mill in 2005 has said the company is looking for a strategic investor, after the mill's debt ballooned to 1.67 billion levs ($1.14 billion) at the end of 2007.

Mittal has appointed Merrill Lynch to advise him on how to proceed after he failed to provide about 140 million euros, required for environmental upgrades and working capital.

Dimitrov said the government, which has a 25 percent stake in the loss-making plant, would ask bidders to guarantee they will keep the plant operating and make the necessary investment.

Sofia-based Kremikovtzi provides 10 percent of Bulgaria's exports, employs 8,000 and ensures indirectly the income of 100,000 people.

Photo: BGNES