ArcelorMittal Temirtau will be bought by a Kazakh investor by December

The investor and the value of the contract will be named after all documents are signed

Kazakhstan intends to close the acquisition of ArcelorMittal Temirtau by an unnamed Kazakh investor by November 30. This was announced by the country’s Prime Minister and Deputy Prime Minister, S&P Global reports.

The investor and the value of the contract will be announced after all the documents are signed. According to the Prime Minister of Kazakhstan, Alikhan Smailov, budget funds will not be used to finance the deal.

«We will buy the enterprise from ArcelorMittal at the expense of the investor,» he noted.

The pre-defined criteria included the candidate’s commitment to spend $3 billion on the reconstruction of the Temirtau steel mill over the next three years, as well as the ability to invest $1.3 billion to address numerous safety issues at the plant and the mines that supply raw materials.

Mr. Smailov also noted that ArcelorMittal has no claims against the government and that the deal is being conducted in a legal manner.

According to the First Deputy Prime Minister of Kazakhstan Roman Sklyar, Total.kz reports that after signing the relevant documents, a program for the company’s resuscitation was developed. According to him, a number of facilities need reconstruction, but the main task is to improve industrial safety.

In addition, the investor will have to carry out environmental measures, and social and salary issues are also in the focus of attention.

As GMK Center reported earlier, the government of Kazakhstan planned to close the deal for ArcelorMittal’s unit in the country, ArcelorMittal Temirtau (AMT), by the end of November. Kazakhstani Industry Minister Kanat Sharlapayev explained that the deal involves the full range of AMT’s assets – steel, coal and ore departments, and the perimeter of the potential transaction includes the pipe plant in Aktau.

Also, ArcelorMittal has valued its assets in the country at $1.8 billion and is aiming to conclude a deal to transfer them as soon as possible, as stated in the company’s latest report.