Kazakhstan govt, ArcelorMittal Temirtau pledge undisrupted business operations
ASTANA. Nov 7 (Interfax) - The Kazakh Ministry of Industry and Infrastructure Development and ArcelorMittal Temirtau (AMT) have affirmed their commitment to maintaining all business operations, guaranteeing uninterrupted supply to their clients.
"Kazakhstan's government and AMT are committed to ensuring the full continuation of business activities, upholding all rights and responsibilities of AMT, which include fulfilling supply contracts with clients, receiving goods and services from suppliers, and meeting obligations to employees, among others," the ministry and AMT said in a joint statement released on Monday.
They said all standard business operations at AMT, including placing orders, executing contracts, dispatching, billing, and managing supplier agreements, are continuing without interruption.
Discussions have been ongoing for several months between the government and ArcelorMittal concerning the transfer of ownership of ArcelorMittal Temirtau assets to Kazakhstan.
"The government and ArcelorMittal have reached a preliminary understanding concerning the future operations of the steel and mining divisions of AMT and its affiliates. All rights and obligations tied to ArcelorMittal Temirtau (AMT), including the Temirtau steel plant, coal division, Orken, and other subsidiaries like the pipe plant in Aktau and offices across the CIS, will be honored," the document says.
In the early hours of October 28, a fire and subsequent explosion at the Kostenko mine operated by Arcelor Mittal Temirtau claimed the lives of 46 miners. At the time of the incident, 252 people were in the mine, and most of them were safely evacuated.
Following the incident, Kazakh President Kassym-Jomart Tokayev demanded an end to investment cooperation with the current shareholders of ArcelorMittal Temirtau.
Prime Minister Alikhan Smailov said later that the government planned to involve a private Kazakh investor in the process of nationalizing ArcelorMittal Temirtau JSC, who will have to invest at least $3 billion over three years.
ArcelorMittal Temirtau JSC is part of the ArcelorMittal international steel company, which operates 15 coal mines and iron ore mines in Kazakhstan.