On Friday, November 30, the Italian government gave the green light to a decree aimed at ensuring the continuation of steelmaking operations at Taranto-based steel producer Ilva. Accordingly, Ilva will now be able to use its coke ovens and blast furnaces, which had previously been seized by court order, while its steelmaking operations and the upgrade of its facilities will have to follow the roadmap outlined by the Environmental Integrated Authorization (EIA) issued in late October by Italy’s Ministry of Environment.
If Ilva does not respect the limitations applied by the EIA, the decree introduces heavy fines amounting to up to 10 percent of the company’s sales revenue. Moreover, the decree imposes the nomination by the Italian government of a guarantor who will monitor the implementation of the EIA with powers to propose extraordinary administration measures.
Italian prime minister Mario Monti stated, “The intervention by the government was necessary as Taranto’s steel complex is a strategic asset for the country.” As regards the recent seizure order issued by the Court of Taranto targeting finished and semi-finished steel products produced by Ilva in the last three months, the situation is still unclear and a final statement by the court is expected on December 6.
Meanwhile, just a few hours before the Italian government’s announcement of its approval of the decree, Taranto examining magistrate Patrizia Todisco rejected for the second time a request filed by Ilva for the cancellation of the seizure of its upstream facilities, i.e., its coke ovens and blast furnaces. The judge also expressed a negative view of the environment ministry’s EIA, stating that the upstream plants must be upgraded first and that production should have to wait for this work to be completed. The decree approved by the Italian government has increased the possibility of a clash between the government and the judiciary.
On July 26 this year, a Taranto court decision had ordered the shutdown of selected blast furnaces and coke oven batteries at the Ilva complex in Taranto due to the environmental impact of Ilva on its surrounding area.
Some 12,000 jobs at Ilva’s Taranto facilities are at stake, as well as an additional 8,000 related jobs. Ilva produced nearly 8.5 million mt of steel in 2011, amost 30 percent of Italy’s overall steel output.