The world's largest steelmaker ArcelorMittal has issued the details of its expansion plan for its Kazahkstan-based Temirtau facility.
According to the company's release, ArcelorMittal is to double Temirtau's capacity from five million mt to 10 million mt within five to nine years.
The investment project covers capacity expansions of steelmaking, iron ore and coal mining. As for the steel plant, ArcelorMittal plans to modernize its existing facility, which will add four million metric tons of annual capacity.
In the mining segment, ArcelorMittal plans to upgrade its operations at the Atasu iron ore mine with the aim of reaching an annual underground mining production capacity of 10 million mt, increasing the total annual production to 16 million mt and making Temirtau self-sufficient in iron ore.
In addition, ArcelorMittal plans to invest $1.2 billion in health and safety and in the modernization of existing coal mines. Moreover, together with the development of new mines, production is expected to reach approximately 17 million mt of mined coal by 2018, thus making Temirtau self-sufficient in coal production as well.
Christophe Cornier, Group Management Board member for the region, commented: "The ArcelorMittal Temirtau expansion is clearly in line with our global growth strategy. We forecast that steel consumption will experience strong growth in the region over the next years. Once the expansion is complete, we estimate that one third of the increased output will be sold back into the Kazakh market and the rest will be exported to neighboring countries that have substantial needs for our products."