ArcelorMittal aims to quickly conclude a deal on assets in Kazakhstan

ArcelorMittal has valued its assets in Kazakhstan at $1.8 billion and aims to conclude a deal on their transfer as soon as possible. This is stated in the company’s latest report.

ArcelorMittal has been devastated by a series of fatal accidents in Kazakhstan, culminating in an explosion at the Kostenko mine on October 28 this year, which killed 46 people.

«These accidents occurred despite increased attention paid to improving security within the group over the past two years,» the report noted.

It is also reported that the company provides financial support to the families and colleagues of those killed in the accident at this mine.

The company recalled that on October 22, 2023, ArcelorMittal signed a preliminary non-binding agreement to transfer ownership of ArcelorMittal Temirtau to the Republic of Kazakhstan. The Group is currently committed to finalizing this agreement as soon as possible.

In addition, ArcelorMittal intends to ensure a thorough analysis of the situation in the group, identify existing gaps and strengthen safety measures, processes and culture to ensure that serious accidents are prevented.

«For this reason, we are commissioning a comprehensive independent third-party security audit, the key recommendations of which will be published in due course,» the statement said.

As GMK Center reported earlier, the Kazakh government plans to close the deal on ArcelorMittal’s subsidiary in the country, ArcelorMittal Temirtau (AMT), by the end of November and does not intend to attract foreign investors after that. According to Industry Minister Kanat Sharlapayev, this includes the full range of AMT’s assets – steel, coal and iron ore departments. The potential transaction also includes a pipe plant in Aktau. He confirmed that a preliminary agreement with ArcelorMittal on the transfer of ownership rights in favor of Kazakhstan was signed a week before the Kostenko mine tragedy.