13 Nov 2023 15:41

Investors from Russia, China, Middle East eye Kazakh steel works

ALMATY. Nov 13 (Interfax) - Investors from Russia, China and the Middle East are interested in investing in Karaganda Metallurgical Plant, which is part of ArcelorMittal Temirtau, said Raimbek Batalov, chairman of the board of National Chamber of Entrepreneurs Atameken.

"The National Chamber has received proposals from domestic and foreign businesses willing to invest in Karaganda Metallurgical Plant. These are investors from the Russian Federation, China and the Middle East," Batalov said on the sidelines of a Monday meeting of the Business Council of the Conference on Interaction and Confidence Building Measures in Asia.

The press service of the Kazakh Ministry of Industry told Interfax that it did not have information regarding potential investors.

"The minister has repeatedly said that the ministry will not provide any information concerning ArcelorMittal Temirtau to mass media until the deal is closed," the press service said.

Karaganda Metallurgical Plant, located in the town of Temirtau, Karaganda region, is part of ArcelorMittal Temirtau JSC.

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 to end 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 announced earlier that the current carrying value of the Temirtau assets (steel and mining) was $1.8 billion as of September 30, 2023.

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