ArcelorMittal spends $262 mn on mine safety

BRUSSELS: ArcelorMittal SA, the world's largest steelmaker, said on Wednesday it is spending US$262.8 million (euro167 million) this year to improve safety at Kazakhstan mines, where dozens of miners have died in accidents.

Thirty-five miners have been killed in two methane explosions at coal mines so far this year, two years after another mine blast in the country claimed the lives of 41 workers.

ArcelorMittal said in a corporate responsibility report that it is looking into ways to drain seams of highly flammable methane gas before coal mining starts, to avoid future explosions.

Criticized for its safety record in eastern Europe, ArcelorMittal says it will invest heavily to upgrade facilities. The steelmaker grew rapidly in recent years as it snapped up rusting steel plants and rundown mines in the former Soviet bloc just as demand for steel surged.

The company said it plans to bring the eight mines in Kazakhstan's Karaganda region up to the highest safety levels by buying new equipment, giving more safety training to workers and introducing gas detection devices and better mine ventilation.

It also promised to upgrade safety at recently acquired mines in Siberia in northeastern Russia.

ArcelorMittal said it is starting to work more closely with communities in Kazakhstan and will give the public access to all the information on the mines' environmental and health and safety record that it submits to the government.

It will also answer complaints from local people within 10 days, it said.

ArcelorMittal, which produces 10 percent of the world's steel, is one of the largest foreign investors in Kazakhstan, providing major infrastructure as well as donations to academic institutions.

These include facilities for a metallurgical institute and a US$50 million (euro32 million) to the University of Astana.