Is KarMet coming back?

21/12/2023

Image source: pixelied.com / pixabay.com

The deal for ArcelorMittal Temirtau has been completed. Now the company has come under the jurisdiction of Kazakhstan. This was announced by the Minister of Industry and Construction of the Republic of Kazakhstan Kanat Sharlapaev.

As Kanat Sharlapaev stated, the decision-making center for the new Kazakh investor should be Kazakhstan.

These should not be people who do not want to work in Kazakhstan or for whom Kazakhstan is part of their business. This is our position. If the decision-making center for an investor or group of investors is Kazakhstan, this is probably a better choice.Kanat Sharlapaev

The minister also added that there is potential synergy between the current business of the Allur group and steel production.

Everyone understands that cars are made of metal. And here, in this regard, to also achieve the production of automotive steel at KarMet (AMT) and integrate this with current businesses – there is normal business logic in this, because this allows us to reduce quite large logistics costs. Deepen the localization of this production. And at the same time, it is clear that this is not some kind of individual decision. A lot of people were involved in it. An entire government commission was involved in selecting investors. And we looked at who could handle it and for whom it really is the main business and somehow allows us to create a synergy effect with their current business.Kanat Sharlapaev

The new investor of ArcelorMittal Temirtau is Kazakh businessman Andrey Lavrentyev, who is the chairman of the board of directors and shareholder of the Allur Group of Companies. The businessman acts as an independent Kazakh investor. Under the terms of the deal, he must invest three billion dollars in the modernization of the plant and mines, as well as fulfill all obligations regarding employee salaries and social packages.

Of course, the new owner faces important challenges. First of all, it must create conditions for labor safety and improve the level of well-being of workers. He will also have to actively participate and help develop the local community through social projects.Akim of the Karaganda region Ermaganbet Bulekpayev said while in Temirtau during the presentation of the new investor to the heads of structural divisions of the steel and coal departments

Meanwhile, the company called ArcelorMittal Temirtau will no longer exist. The company is awaiting rebranding. The new investor said that the company will return its old name – “KarMet”, and Vadim Basin will take the place of the general director.

Also, the Kazakh businessman, in addition to acquiring assets, undertakes to invest $3 billion in modernizing production and protecting the environment of the region, of which $1.3 billion will be invested next year.

Meanwhile, the Prosecutor General’s Office announced a pre-trial investigation into the explosion at the Kostenko mine, which killed 46 people. The pre-trial investigation into this fact is carried out by special prosecutors of the General Prosecutor’s Office with the participation of employees of the Ministry of Internal Affairs, the AIC, the AFM and the Ministry of Emergency Situations.

“It was established that the explosion initially occurred at the coal mining site of longwall No. 48K3-west from the ignition of a methane-air mixture emanating from the underlying coal seam K2, the source of which was mechanical sparking from the operation of the face scraper conveyor-2.”General Prosecutor’s Office

The explosion led to a subsequent series of explosions in the mine workings of coal dust, the concentration of which significantly exceeded permissible standards.

“The investigation established that during the operation of the mine, numerous violations of industrial and fire safety rules, as well as labor protection rules, were committed, directly related to the tragic event. At present, the management and engineering staff of the mine, numbering 7 people, are suspected of failing to ensure safety measures during coal mining.”General Prosecutor’s Office

The suspects, in accordance with Article 128 of the Code of Criminal Procedure, were placed in the temporary detention center of the DP in the Karaganda region. It is noted that as part of the investigation, a legal assessment will also be given to officials of ArcelorMittal Temirtau JSC and the Department of Industrial Safety of the Ministry of Emergency Situations for the Karaganda region, who did not ensure proper control over the safe operation of the mine.

The investigation is ongoing and is under special control.

Source and Credit: dknews.kz

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