Steel giant ArcelorMittal
ArcelorMittal is the largest steel company in the world, producing approximately 8 per cent of the world’s steel output. But the cost of its success has largely been paid by the people living and working near the company’s plants, because of the ArcelorMittal’s frequent disregard for the environment and fair labour practices.
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ArcelorMittal in Zenica, Bosnia-Herzegovina.
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We closely follow international public finance and bring critical updates from the ground.
Background
Despite ArcelorMittal’s penchant for profit over people international financial institutions (IFIs) continue to disburse loans to the company.
Does ArcelorMittal really need public loans?
During the last 15 years, ArcelorMittal’s predecessor companies, mainly Mittal Steel, have bought up several old and highly polluting steelmills and made them profitable. However environmental improvements other than those necessary to increase production efficiency have been painfully slow.
The company has benefited from eleven IFI loans during the last ten years (details below). Yet its net profit in 2007 (the year the EBRD approved the Kazakh loan) was USD 7.6 billion. [1]
ArcelorMittal’s CEO and President of the Board of Directors, Lakshmi Mittal, who owns 40 per cent of the company, is the 5th richest man in the world and the richest resident of the UK (2010), worth USD 28.7 billion.
Is this the type of beneficiary that the architects of low-interest development loans had in mind when they set up the IFIs?
ArcelorMittal among worst lobbyists
As in the previous year, ArcelorMittal was again one of the candidates for the 2010 worst EU lobby award.
While the company is one of Europe’s largest emitters of CO2, it successfully lobbied the European Commission on behalf of Europe’s biggest polluters to continue getting free greenhouse gas emissions permits until at least 2020.
Evidence from the ground
Temirtau, Kazakhstan
The company claims to have implemented the environmental and health and safety improvements for which it received IFI loans at its Temirtau mining complex. But many accidents and deaths are still happening in the mines and ArcelorMittal is reluctant to disclose documents and proof about the alleged improvements.
A collection of shortcomings of ArcelorMittal projects:
In the wake of ArcelorMittal
Study | May 13, 2008
ArcelorMittal: Going nowhere slowly
Study | May 12, 2009
Civil society reacts: Global Action on ArcelorMittal
In 2008 the Global Action on ArcelorMittal coalition was formed by community and environmental groups from various countries where ArcelorMittal operates its steel mills and mines. The coalition’s aim is to hold the world’s largest steel company accountable for the social and environmental impacts caused by its activities.
The coalition has exposed problems in countries as diverse as the Czech Republic, USA, Liberia and South Africa, and has called on the international financial institutions not to condone ArcelorMittal’s activities with any more public money.
Notes
1. ArcelorMittal annual report 2007 (pdf)
Latest news
Arcelor Mittal SA: Undone and dusted
Bankwatch in the media | 9 June, 2011No-one who has driven between Bloemfontein and Johannesburg could fail to have noticed the haze, stench and massive steelworks near the motorway. But Amsa is not the only polluter in the area. Sasol, Eskom power stations and, in winter, household coal fires also contribute to the horrible air quality
Read moreHundreds to protest against ArcelorMittal in Bosnia and Herzegovina
Press release | 10 February, 2011Hundreds of people are expected to attend a protest against illegal levels of air pollution from the local ArcelorMittal steelmill this Friday afternoon. The action has been organized through social media and is supported by local NGOs Dosta! and Zenica Eko-Forum.
Read moreHave you voted in the 2010 worst EU lobbying awards yet?
Blog entry | 5 November, 2010ArcelorMittal, one of the candidates for the worst EU lobby award, is the world’s largest private steel company, producing 10 per cent of the world’s steel. It is also one of Europe’s largest emitters of CO2. Yet the company successfully lobbied the European Commission on behalf of Europe’s biggest polluters to continue getting free greenhouse gas emissions permits until at least 2020.
Read moreRelated publications
Letter to EIB asking for further explanation of ArcelorMittal’s eligibility for EIB funding
Advocacy letter | 27 November, 2009 | Download PDFThe EIB responded to our letter on December 22, 2009. Their response can be downloaded as pdf here.
Letter to EIB regarding a planned loan for ArcelorMittal
Advocacy letter | 19 October, 2009 | Download PDFThe letter by NGO coalition Global Action on Arcelor Mittal (GAAM), follows the discovery of EIB considerations of a loan for steel company ArcelorMittal and informs the EIB of ArcelorMittal’s extremely poor environmental, social and transparency record in many countries. As the worlds largest steel company ArcelorMittal could access financing from other sources, and there is no added value in providing a low-interest public loan to the company. GAAM and Bankwatch therefore urge the EIB not to approve any loan to ArcelorMittal in the foreseeable future.
ArcelorMittal: Going nowhere slowly. A review of the global steel giant’s environmental and social impacts in 2008-2009.
Study | 12 May, 2009 | Download PDFThis new report reviews the company’s environmental and social impacts during the years 2008-2009 since the coalition Global Action on ArcelorMittal published its first report on the company in May 2008. The new report includes case studies from Bosnia-Herzegovina, the Czech Republic, India, Kazakhstan, Liberia, Romania and South Africa.
