MINEX Forum

Tag: ArcelorMittal

  • Bosnia’s Nova Ljubija Iron Ore Mine Preparing Bankruptcy Filing Amid Financial Struggles

    Bosnia’s Nova Ljubija Iron Ore Mine Preparing Bankruptcy Filing Amid Financial Struggles

    Iron ore producer Nova Ljubija in Bosnia and Herzegovina is preparing to initiate bankruptcy proceedings after its owners determined that continuing operations is no longer financially viable.

    According to local media reports, the company is currently finalising documentation and is expected to file for bankruptcy in the coming days. Suzana Gasic, deputy director of Nova Ljubija, confirmed the move, noting that prolonged financial difficulties faced by its sole customer, steel producer Nova Zeljezara Zenica, have significantly impacted the mine’s operations.

    Nova Zeljezara Zenica has reportedly been unable to settle outstanding obligations to the mining company, creating a sustained liquidity strain that contributed to the decision to seek bankruptcy protection.

    The Nova Ljubija mine employs around 600 workers and has been a key iron ore supplier to Bosnia’s steel industry. The company is jointly owned by local diversified group Pavgord and mining operator Rudnici Zeljezne Rude Ljubija.

    The situation follows a broader restructuring of steel assets in the country. In June 2025, Luxembourg-based steel giant ArcelorMittal agreed to sell its shares in steel plant operator ArcelorMittal Zenica and iron ore producer ArcelorMittal Prijedor to Pavgord.

    Industry observers note that the difficulties faced by Nova Ljubija reflect broader pressures within the regional steel sector, including financial instability among downstream producers and shifting market conditions.

  • ArcelorMittal Sells Bosnian Steel and Iron Ore Operations to Pavgord Group

    ArcelorMittal Sells Bosnian Steel and Iron Ore Operations to Pavgord Group

    ArcelorMittal, the world’s second-largest steel producer, has agreed to sell its operations in Bosnia and Herzegovina to local conglomerate Pavgord Group, marking the end of a 21-year presence in the Balkan nation. The deal includes ArcelorMittal’s steel mill in Zenica and its iron ore mine in Prijedor, which collectively employ approximately 2,700 workers.

    The sale, announced Friday, is expected to close in the third quarter of 2025 once all regulatory and contractual conditions are satisfied. Under the terms of the agreement, Pavgord Group will retain all employees, aiming to ensure operational continuity.

    ArcelorMittal anticipates a $200 million accounting loss from the transaction, not including any income from the sale itself. The company cited ongoing financial challenges—specifically, €162.6 million in losses over the past two years—as the reason for divesting. A sustained drop in steel demand across Europe heavily impacted the viability of its Bosnian operations.

    “Despite significant investment and efforts to sustain the business, a detailed strategic analysis led us to conclude that a sale is the most viable path forward for the development of the operations and the welfare of the employees,” the company stated.

    Pavgord Group, the buyer, is already a major force in Bosnia’s industrial landscape, owning Alumina, the country’s top exporter last year, and a controlling stake in Boksit, a leading bauxite mining firm.

  • Europe puts flagship green steel project in jeopardy

    Europe puts flagship green steel project in jeopardy

    The potential closure of the Steelanol plant in Ghent, Belgium, by ArcelorMittal, due to restrictive and unsupportive EU regulations, highlights a critical issue in the intersection of climate policy and industrial innovation. This plant is a pioneering project in the decarbonization strategy of ArcelorMittal, capturing CO2 from blast furnace gases and converting it into ethanol, thereby reducing carbon emissions and turning industrial waste into a valuable product.

    The EU has shown a clear preference for hydrogen as the path to climate neutrality, potentially overshadowing other technological innovations like Steelanol, which offer immediate CO2 savings. This situation puts €250 million of investment, as well as 35 jobs, at risk, and underlines the challenges that companies face when navigating the complex and sometimes unpredictable regulatory landscape in Europe.

  • ArcelorMittal Hikes Long Product Prices in Europe Amidst Energy Cost Surge

    ArcelorMittal Hikes Long Product Prices in Europe Amidst Energy Cost Surge

    Global steel giant ArcelorMittal has announced a €25/t ($25.6/t) price hike for long products across all European regions. This increase applies to a range of products, including rebar, welded mesh, sectional products, and both low-carbon and high-carbon wire. The new pricing is effective immediately for all new orders, as reported by Kallanish.

    The primary reason behind this price adjustment is a sharp rise in energy costs, which has made current prices for long products unsustainable. In particular, electricity prices in Germany have surged by 41% compared to October 2024, while gas prices across Europe have seen a 22% rise. Gas prices, according to the TTF index, jumped from €40/MWh in October 2024 to €48.2/MWh in January 2025.

    Despite the ongoing market weakness, other European steelmakers have supported the price increase. Rebar, sectional products, and wire prices are climbing in various EU markets, although overall market activity remains subdued. Transaction volumes have been limited, especially with the slowdown of the construction sector in France and Germany.

    However, some positive signs have emerged, particularly from northern Europe, where demand for certain long products, such as sections, has shown unexpected improvement. There has also been a rise in rebar inquiries, signaling potential activity within the construction industry.

    This is the second price hike for long products from ArcelorMittal in recent months. The last increase occurred in early October 2024, when prices were raised by €40/t due to global market volatility and rising raw material costs.

    Steel industry watchers will continue to monitor whether these price adjustments can help stabilize the market or if further challenges will arise in the coming months.

  • Eurogroup Laminations Partners with ArcelorMittal to Meet Rising Demand for Electric Motor Solutions

    Eurogroup Laminations Partners with ArcelorMittal to Meet Rising Demand for Electric Motor Solutions

    The demand for stators and rotors, essential components of electric motors and generators, is experiencing a surge, particularly from global Original Equipment Manufacturers (OEMs) in the automotive industry, driven by the electric vehicle (EV) revolution. There is also a growing need for advanced motor cores across various industries due to the rapid advancement in renewable energy and automation. In response to this demand, Eurogroup Laminations has entered into a partnership with ArcelorMittal to provide innovative motor core solutions, combining Eurogroup’s expertise in motor core design with ArcelorMittal’s production capacity in non-oriented electrical steels (NOES). According to Marco Barabino, Key Account Manager Electrical Steel at ArcelorMittal Europe, the partnership is crucial for meeting EU deadlines for transitioning away from conventional internal combustion vehicles by 2035. This collaboration will enable a significant increase in electrical steel production, with plans for a new facility in Mardyck, France, aimed at tripling annual capacity to 300,000 tonnes. As the world shifts towards an energy transition, Eurogroup’s CEO Marco Arduini emphasizes the importance of expanding production capabilities while focusing on tailored investments across global operations. ArcelorMittal’s iCARe range of electrical steels has been specifically designed for the automotive market, offering solutions that meet the performance and efficiency demands of modern EVs. The partnership aims to deliver customized motor core solutions to meet the diverse needs of customers in the automotive sector and beyond

  • ArcelorMittal Reduces Emissions Significantly Through Environmental Investments in Poland

    ArcelorMittal Reduces Emissions Significantly Through Environmental Investments in Poland

    The global steel company ArcelorMittal has invested more than PLN 10.5 billion ($2.6 billion) in its Polish assets over the past 20 years, with a significant portion allocated to environmental projects. According to a press release from ArcelorMittal Poland, these investments have resulted in a 90% reduction in dust emissions and a 42% reduction in carbon dioxide emissions compared to 2004 levels.

    The company’s Polish division has undergone numerous changes in the past two decades, implementing new technologies in compliance with increasingly strict EU directives, decommissioning outdated installations, and modifying many production processes to minimize environmental impact. ArcelorMittal aims to achieve climate neutrality by 2050, with an interim goal of reducing CO2 emissions by 35% at its European plants by 2030 compared to 2018.

    “Decarbonization is a huge challenge for the steel industry across Europe,” commented Sanjay Samaddar, President of the Board of ArcelorMittal Poland. “To make it successful, several conditions must be met, including access to large-scale, renewable energy at competitive prices. We know the transformation will be a long-term process, so we are already working intensively to limit our impact on the environment in our current processes.”

    In recent years, ArcelorMittal has invested about PLN 700 million in green projects at the Dąbrowa Górnicza plant. Modernization efforts have also been made at plants in Sosnowiec, Zdzieszowice (PLN 205 million), and Kraków (PLN 100 million), among others. ArcelorMittal Poland plans to invest an additional PLN 165 million ($40.9 million) in modernizing the coke plant in Zdzieszowice, with all work expected to be completed by 2026.

    As reported by GMK Center, in 2023, ArcelorMittal Poland invested PLN 1.5 billion ($363 million) in modernization and growth projects at three facilities to improve product quality, energy efficiency, and plant efficiency, with the largest investment directed towards modernizing the blast furnace in Dąbrowa Górnicza.

  • ArcelorMittal Warns of Possible Halt to German Decarbonisation Plans Without Cheap Renewable Energy

    ArcelorMittal Warns of Possible Halt to German Decarbonisation Plans Without Cheap Renewable Energy

    Steelmaker ArcelorMittal has issued a warning that it may not proceed with its plans to decarbonise its steel plants in Germany unless it secures cheap electricity and a sufficient supply of renewables and hydrogen. On Friday, Thomas Buenger, head of the steelmaker’s German division, stated that without internationally competitive energy prices and adequate green electricity and hydrogen, there is an increased risk of industrial production capacity leaving the country.

    Buenger emphasized that these conditions need to be met by mid-2025, the deadline for ArcelorMittal’s final investment decision on its €2.5 billion ($2.7 billion) decarbonisation plan for its German steel mills. Out of this total, around €1.3 billion are expected to be covered by German government subsidies, similar to the decarbonisation projects of peers Thyssenkrupp and Salzgitter, which also rely on public support.

    Buenger mentioned that detailed planning and the review of the economic viability of the transformation plans are currently underway.

  • ArcelorMittal’s European Head Casts Doubt on Feasibility of Green Hydrogen for Steel Production

    ArcelorMittal’s European Head Casts Doubt on Feasibility of Green Hydrogen for Steel Production

    Gert van Poelwrode, the head of ArcelorMittal’s European division, has expressed skepticism regarding the practicality of utilizing green hydrogen for steel production within the EU. Despite receiving substantial subsidies for relevant equipment, he suggested that importing Direct Reduced Iron (DRI) might be a more viable option for producing low-carbon steel.

    According to van Poelwrode, the high cost of “green” hydrogen in Europe could render it economically unfeasible for steel plants. He emphasized concerns about market competitiveness and the potential exclusion from international markets should they opt for hydrogen-based steel production.

    While policymakers advocate for decarbonization efforts in the steel sector through the utilization of DRI produced with “green” hydrogen, van Poelwrode’s comments underscore apprehensions that ArcelorMittal’s planned installations may not immediately adopt this approach, despite substantial government subsidies.

    The company anticipates significant grants from various European governments to facilitate the transition to “green” steel production, with an estimated total subsidy amounting to €1.65 billion. However, van Poelwrode noted that cost-effective hydrogen pricing, around €2/kg, is essential to ensure the competitiveness of low-carbon steel derived from it, even with progressive carbon emission taxes in Europe.

    Furthermore, he highlighted the challenges of green hydrogen production costs in Europe, which can reach €6-7/kg under current electrolysis schemes. Importing “green” hydrogen, although cheaper in regions like Africa, would still incur substantial transportation costs, approximately €1.5/kg.

    The decarbonization of the steel industry remains a pivotal issue in 2024, with the availability of environmentally friendly hydrogen and competitively priced renewable energy playing crucial roles in the process.

  • EU Commission Approves €1.3 Billion State Aid for ArcelorMittal’s Green Steel Initiative

    EU Commission Approves €1.3 Billion State Aid for ArcelorMittal’s Green Steel Initiative

    The European Commission announced on Friday its approval of €1.3 billion ($1.41 billion) in state aid from Germany to support steel producer ArcelorMittal in its efforts to decarbonize a portion of its production processes.

    Stating that the aid was essential to promote the production of environmentally friendly steel, the commission deemed it necessary and fitting. It emphasized that the anticipated positive impacts, particularly in terms of reducing carbon emissions, outweighed any potential negative effects on competition and trade within the EU

  • ArcelorMittal Secures $450 Million Guarantee from Kazakh Sovereign Wealth Fund

    ArcelorMittal Secures $450 Million Guarantee from Kazakh Sovereign Wealth Fund

    ArcelorMittal, in its corporate report for the year 2023, revealed that it obtained a guarantee from an undisclosed Kazakh sovereign wealth fund for the deferred repayment of a $450 million intra-group loan during the finalization of the sale of “ArcelorMittal Temirtau” (AMT) in December. The deal involved the transfer of ownership rights to the Republic of Kazakhstan, with the state-controlled direct investment fund Qazaqstan Investment Corporation (QIC) acquiring AMT. As per the terms of the transaction, ArcelorMittal received compensation of $286 million upon closing, along with an additional $250 million as payment for existing intra-group debt. Moreover, the steel group will receive a guaranteed payment of $450 million from the sovereign fund, to be disbursed in four equal annual installments for the repayment of the intra-group loan. However, the specific Kazakh sovereign wealth fund involved in the guarantee remains undisclosed, leading to speculation that it may have been issued by the National Fund. Notably, the obligations to repay the loans were expected to be assumed by the new investor, Andrey Lavrentyev, controlling AMT under the new name Qarmet through Qazaqstan Steel Group. Clarification from relevant entities regarding the guarantee’s source is pending.