ArcelorMittal Mines Canada plans four-week production stoppage

Friday, 08 May 2009 14:04:00 (GMT+2)

A wholly owned subsidiary of ArcelorMittal, the world's number one steel company, ArcelorMittal Mines Canada has announced its plan for a temporary four-week production stoppage at its Mont-Wright and Port-Cartier facilities.

Mont-Wright is where the company operates one of the largest open-pit mines in North America, as well as an iron ore concentration plant. The site is linked by company rail to the industrial complex of Port-Cartier, where rail workshops, an internationally competitive pellet plant, a private port and the company's corporate offices are located.

The company said it would confirm the duration and exact terms of this temporary production shutdown in early June.

Accordingly, Mont-Wright mining extraction and concentration operations will be suspended beginning next July 26, while Port-Cartier production operations at the pellet plant will be suspended beginning next July 16 while handling and ship-loading operations will continue.
During this period, rail transportation of iron ore concentrate will cease but certain track maintenance work may be carried out.

ArcelorMittal Mines Canada said that all staff and unionized employees were being encouraged to take their annual vacations during the temporary production stoppage. Employees who will be called to remain on the job will be so advised by their immediate superiors.

Commenting on the idling plans, ArcelorMittal Mines Canada vice president and chief operating officer Serge Miller said, "The economic crisis is having a very hard impact on the world steel industry on which our sector depends. Steel companies have considerably reduced their production in reaction to the fall in demand and the rapid rise in inventories. This situation is having a direct impact on our operations and on the level of our own inventories. This temporary production stoppage will allow us to liquidate our inventories and plan for operations resuming based on the day-to-day market conditions which remain extremely volatile. We are sparing no effort to minimize the temporary production stoppage. We will carefully monitor market conditions and will continue to keep our employees posted on the situation."

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