Mittal Steel Temirtau - Coal Mine Modernisation

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The proposed project is to support further improvements to ArcelorMittal Temirtau’s (“AMT”) health and safety practices at its coal mines in Karaganda with the aim to bring them in line with international best practice. The proceeds of the EBRD financing would be used for capital expenditures associated with the improvement of health and safety standards in the coal mines. Key investment areas will be gas monitoring and management systems, degassing and ventilation equipment upgrades, upgrades of electrical equipment and prevention of coal face collapses and roof falls. The beneficiary of the EBRD loan will be ArcelorMittal Temirtau the largest steelworks in Kazakhstan. AMT is wholly owned by ArcelorMittal S.A. (“ArcelorMittal”), the largest steel company in the world. AMT’s operations comprise the steel works as well as 8 coal mines. Loan for USD 100 million. USD 500 million. The proceeds of this loan facility are dedicated to health and safety related investments and the implementation will result in significant benefits. The project has been screened B/1, requiring an environmental analysis of the proposed investment programme and an environmental audit of AMT's steel production and mine facilities as well as corporate environmental management practices. An Environmental Action Plan (EAP) has been agreed for the company and effective implementation is monitored by the Bank and by their independent consultants. The EAP include measures to reduce atmospheric emissions, modernise the existing water supply and sewage systems, prevent spills and soil or groundwater contamination, introduce energy efficiency measures and improve safety. The mine health and safety programme is being implemented on schedule; however, there are significant delays in the implementation of some items of the EAP. The secondary air emission control of the converter shop, dust emission control of both combined heat and power plants and SOx emission control of the Sinter Plant are all postponed due to the current difficult economic environment. Refurbishment of the tailing pods and ash lagoons suffered also delays, but AMT is committed to implement these actions in 2009. A Stakeholder Engagement Plan was agreed in 2008 following discussions with stakeholders, but has been delayed in implementation. A plan with revised implementation dates is being discussed with AMT, and will be made public in Q4 2009. None. Mr Orman T. Kamzabaev 1, Republic Avenue 101407 Temirtau, Karaganda Kazakhstan E-mail: Orman.Kamzabaev@arcelormittal.com