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Frequently asked questions about ArcelorMittal’s mining business

Frequently asked questions

What is your mining strategy going forward?
ArcelorMittal is among the five largest producers of iron ore and metallurgical coal. Our aim is to create value through operational excellence by supplying products which are highly valued by our customers while caring for the environment and our people, maintaining safety first, always.

Although low iron ore prices are set to continue we are clear on what we need to do to remain competitive in this environment. We continue to supply high-quality products within ArcelorMittal, and also a portion to the global steel industry. And we do this by focusing on costs, running assets full where possible, accelerating and intensifying actions in those mines that are most affected, and continuing to improve overall equipment effectiveness to reach industry benchmark levels. 
 
What is your approach to dealing with the environmental impact of mining?

We recognise that mining can have adverse ecological effects, and are committed to minimising the environmental impact of our activities. We work towards preserving the natural environment around our mines, by taking all possible measures to mitigate adverse affects. This approach is reflected in our environmental programme for Liberia, where our extensive environmental study of the biodiversity around our mine was integral to our planning for the greenfield mine.

How is your record for safety in mines?

Our mines have seen a steady decline in the lost time injury (LTIF) frequency rate, which is the number of injuries that have resulted in loss of work time per million hours worked. Our LTIF rate reduced from 3.40 in 2008 to 0.74 in 2015.

What are your recent figures for iron ore and coal production?

As of December 31, 2015, our iron ore reserves are estimated at 4.3 billion tonnes run of mine, and our total coking coal reserves are estimated at 265 million tonnes run of mine, or 133 million wet recoverable tonnes. Our long-life iron ore and coal reserves provide a measure of security of supply and an important natural hedge against raw material volatility and global supply constraints.

How much of your current iron ore shipments is marketed externally?

In 2015 we reported full year 2015 iron ore shipments of 62.5Mt, of which 40.3Mt were shipped at market price.

Where are your iron ore and coal assets?

ArcelorMittal currently has iron ore mining activities in Brazil, Bosnia, Canada, Kazakhstan, Liberia, Mexico, Ukraine and the United States. The company also have coal mining activities in Kazakhstan and the United States. Our main mining products include iron ore lump, fines, concentrate, pellets, sinter feed, coking coal, PCI and thermal coal.

What is the status of iron ore mining at ArcelorMittal Mines Canada?

ArcelorMittal Mines Canada is our flagship iron ore operation. In 2015, shipments increased by 14.1% and production increased by 10.9% to 25.9 million tonnes. Cash costs at AMMC were below $25 per tonne FOB in the final quarter of 2015, a truly world-class level. We expect to continue to increase volume at AMMC with minimal capex, and reduce costs still further.

What is the status of your iron ore asset in Liberia?

ArcelorMittal Liberia is considering moving ore extraction from its depleting DSO (direct shipping ore) deposit at Tokadeh to the nearby, low strip ratio and higher grade DSO Gangra deposit, by 3Q 2017. In the current initial DSO phase at Tokadeh, significant cost reduction and restructuring continued to ensure the mine’s competitiveness at current prices. Following a period of exploration cessation caused by the onset of Ebola, ArcelorMittal Liberia recommenced drilling for DSO resource extensions in late 2015. In 2016 the operation at Tokadeh was right sized to 3Mtpa to focus on its ‘natural’ Atlantic markets and this will continue in 2016 at rates between 2Mtpa and 3Mtpa to maintain the life of the DSO phase as ArcelorMittal finalises the transition to the appropriate next phase of development.  The nearby Gangra deposit is now the preferred next development in a staged approach as opposed to the originally planned phase 2 step up to 15Mtpa of concentrated sinter fine ore that was delayed in August 2014 due to the declaration of force majeure by contractors following the Ebola virus outbreak, and then reassessed following rapid iron ore price declines over the period since. Accordingly, definition drilling has begun in Gangra. ArcelorMittal remains committed to Liberia where it operates a full value chain of mine, rail and port and where it has been operating the mine on a DSO basis since 2011. With 2 billion tonnes of iron ore resource in its lease, ArcelorMittal Liberia presents a strong, competitive source of product ore for the international market based on continuing DSO mining and then moving to a long term sinter feed and concentration phase. Extensive tonnage of concentrator feed material is already exposed in readiness for the planned concentrated sinter fines phase.

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