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Kazakhstan to nationalise ArcelorMittal after deadly coal mine blaze

The Ministry for Emergency Situations in Kazakhstan has reported a deadly blaze at a coal mine, operated by ArcelorMittal Temirtau, resulting in the loss of 28 workers’ lives. The incident, which appears to have been catalysed by a methane explosion, occurred at the Kostenko mine. Of the 252 personnel at the site during the incident, 206 were safely evacuated, albeit 18 required medical attention, as per a company statement issued on Saturday. However, as of 2pm (08:00 GMT), 21 individuals remained unaccounted for.

ArcelorMittal Temirtau is the regional subsidiary of the Luxembourg-based conglomerate ArcelorMittal, the second-largest steel producer globally. The company oversees eight coal mines throughout the Karaganda region and an additional four iron ore mines in central and northern Kazakhstan, in the heart of Central Asia.

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This fire incident marks yet another in a series of fatal occurrences at ArcelorMittal Temirtau’s sites. In August, a fire outbreak at the same mine led to the deaths of four miners, followed by a fatal methane leak at a different site in November 2022, claiming five lives.

Following these incidents, Kazakh President Kassym-Jomart Tokayev announced on Saturday the termination of his government’s investment partnership with Arcelormittal. He also expressed his condolences to the bereaved families and declared a national day of mourning on October 29.

The Kazakh government is on the verge of finalising a deal to nationalise the company, which manages the largest steel mill in the country. This was confirmed by ArcelorMittal in an official statement. The company also acknowledged ongoing discussions about the future of ArcelorMittal Temirtau and a recently signed preliminary agreement that would transition ownership to the Republic of Kazakhstan.

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ArcelorMittal expressed its commitment to finalising the transaction promptly to mitigate disruption to the maximum extent. Last month, First Deputy Prime Minister Roman Sklyar revealed that Kazakhstan was in discussions with potential investors regarding taking over the mill. He voiced the cabinet’s dissatisfaction with ArcelorMittal’s inability to uphold its investment obligations, modernise equipment, and ensure worker safety following a sequence of fatal accidents.

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