Kazakhstan to close the agreement on ArcelorMittal assets by the end of November

The government of Kazakhstan plans to close the agreement on the ArcelorMittal division in the country – ArcelorMittal Temirtau JSC (AMT) by the end of November and after that does not intend to attract foreign investors. This was stated by the Minister of Industry of Kazakhstan Kanat Sharlapaev, reports Kursiv.

Sharlapaev said that the government will not spend money from the budget or quasi-state funds on the takeover – there will be several sources of financing and an agreement with a complex structure. The transaction is expected to be completed by the end of November, by which time legal documentation should be ready. A legal entity controlled by the government will represent the state in the agreement. The authorities are also carrying out detailed work to protect themselves from further litigation after ArcelorMittal withdraws from AMT shareholders.

Sharlapaev also explained what assets would be transferred to the state.

“We are talking about the full range of AMT assets in Kazakhstan – these are the steel, coal and iron ore departments. Also a pipe plant in the city of Aktau is included in the perimeter of the potential transaction. That is, we are talking about the full assets of AMT in Kazakhstan,” stated official.

The Kazakh authorities do not plan to attract foreign investors after the future acquisition of ownership rights to ArcelorMittal Temirtau JSC.

According to Sharlapaev, a preliminary agreement with ArcelorMittal on the transfer of ownership rights in favor of Kazakhstan was concluded a week before the tragedy at the Kostenko mine.

“The government has been negotiating with AMT for quite a long time. Therefore, to say that it happened quickly is wrong. This was preceded by quite a long period of government work on AMT. We have mutual agreements. This is done on contractual terms with current shareholders,” the minister noted.

Sharlapaev added that after the company becomes the property of the state, all existing conditions at the enterprise will be maintained, including the number of employees (about 30 thousand people) and wages. According to him, there are no plans to spend budget money on support, since the enterprise earns money independently and remains operational.

The minister also noted that after the transfer of AMT assets to Kazakhstan, rebranding will occur. This is a mandatory condition, since after ArcelorMittal leaves the shareholders, the company will not be able to use its previous name.

As GMK Center reported earlier, at the end of October an accident occurred at the Kostenko mine of ArcelorMittal Temirtau, which resulted in the death of 46 miners; a criminal case was opened in connection with this fact. After the tragedy, President of Kazakhstan Kasim-Jomart Tokayev instructed the government to terminate investment cooperation with ArcelorMittal Temirtau shareholders. Later, Prime Minister Alimkhan Smailov stated that the process of transferring AMT in favor of Kazakhstan was being completed.