Luxembourg-based steelmaker ArcelorMittal has successfully sold its steel and mining operations in Kazakhstan, bringing an end to lengthy negotiations and pressure from the Kazakh government. The company’s business, ArcelorMittal Temirtau, has been acquired by the Qazaqstan Investment Corp., a state-controlled direct investment fund.
According to a statement released by ArcelorMittal on Friday, the company received $286 million for the assets. Additionally, the deal includes a further $700 million to repay outstanding intra-group debt. This agreement marks the resolution of negotiations that were disclosed in late October after a tragic accident at the company’s Kostenco coal mine resulted in the loss of several miners’ lives.
In the wake of the incident, the Kazakh government declared an end to its cooperation with ArcelorMittal. This event followed others that had previously impacted the company’s operations in the country, including a fire at the Kazakhstanskaya mine and a suspected gas leak and explosion at the Lenin coal mine.
As a result of the acquisition, ArcelorMittal Temirtau will now be controlled by the investment fund and undergo a rebranding. Unfortunately, the sale is expected to have a negative impact on equity amounting to approximately $800 million.
According to ArcelorMittal’s latest financial report, the company valued the ArcelorMittal Temirtau assets at $1.8 billion as of September 30.
