Regardless of the general slowdown registered lately in the global steel market and the previously announced 25-30 percent production cut for 2008 for its Kazakhstan-based subsidiary ArcelorMittal Temirtau, the world's largest steel producer ArcelorMittal has decided not to freeze its expansion plans for this mill.
"The investment plan for Temirtau will be carried on as projected," a representative of ArcelorMittal has told SteelOrbis.
As previously reported by SteelOrbis, 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 in steelmaking and in mining of iron ore and coal. 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.