10 Nov 2023 15:48

ArcelorMittal values Temirtau assets in Kazakhstan at $1.8 bln

ASTANA. Nov 10 (Interfax) - ArcelorMittal has valued its Kazakhstan-based asset ArcelorMittal Temirtau at $1.8 billion, the company said in a report.

"As of September 30, 2023, the current carrying value of the Temirtau assets (steel and mining) is $1.8 billion," according to the report.

A preliminary agreement was signed on October 22, 2023, with the Kazakhstan government for the transfer of ownership of ArcelorMittal Temirtau to the Republic of Kazakhstan, or a week prior to the occurrence of the deadly accident at the Kostenko mine, the company said.

"The company is focused on concluding the transaction as soon as possible. Additionally, once a binding agreement has been entered into and the transaction has been closed, the net assets will be deconsolidated," according to the report.

On the night 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 to end investment cooperation with the current shareholders of ArcelorMittal Temirtau.

Prime Minister Alikhan Smailov later said that the government planned to involve a private Kazakh investor in the process of nationalizing JSC ArcelorMittal Temirtau, who must invest at least $3 billion over three years.

JSC ArcelorMittal Temirtau is part of the ArcelorMittal international steelmaking company, which operates 15 coalmines and iron ore mines in Kazakhstan.