The world's largest steel producer ArcelorMittal and the administration of the Russian coal mining region of Kemerovo have prepared a joint project for the development of the company's Kemerovo region-based coal assets.
According to the project, ArcelorMittal will continue coal mining operations at its mines located in the Kemerovo region, and will invest in the modernization of its Pervomayskaya mine in order to keep it functioning in accordance with local labor and ecological laws.
On the other hand, the local administration is to ensure the sale of the coal produced, especially that produced at the company's Anzherskoye mine, in order to provide job security for the mines' workers and to avoid mass layoffs.
As SteelOrbis previously reported, due to the critical situation in the global and Russian coal and steel markets, ArcelorMittal intended to temporarily halt operations at its Pervomayskaya and Anzherskoye mines, in case its comprehensive program for cost saving and restructuring of the workforce would not result in sustainable operation of the mines.
In April 2008 ArcelorMittal completed the acquisition of Kemerovo-based coal assets from Severstal-Resurs, including the Berezovskaya, Pervomayskaya and Anzherskoye mines, and also Severnaya coal preparation plant.