The Government of Kazakhstan and ArcelorMittal have completed a transaction in which the Qazaqstan Investment Corporation (‘QIC’), a state-controlled direct investment fund, has acquired 100% of the shares in both ArcelorMittal Temirtau JSC and ArcelorMittal Tubular Products Aktau JSC (jointly referred to as ‘ArcelorMittal Temirtau’). This transaction, the result of many months of discussions, is strategically aimed at fostering a stable and sustainable future for ArcelorMittal Temirtau and is aligned with the mutual interests of all involved entities.

According to the terms of the deal, the portfolio of assets is transferred on an ‘as is’ basis. Consequently, upon the agreement's execution, QIC has assumed comprehensive control and accountability for ArcelorMittal Temirtau’s operations. The entity will undergo a rebranding and will operate under a new name.

ArcelorMittal has owned the steel plant and integrated iron-ore and coal mines since 1995 and its nearly three decades in the country has supported the continuance of integrated steelmaking in Kazakhstan. The steel and mining assets play an important role in the local and regional economies.

The Kazakhstan Government, as the new owner, has committed to establish an environment conducive to the long-term financial and operational stability of the company. There is an imperative to not only maintain but also enhance the efficacy of all existing business processes, while ensuring the continuity of current operations. Additionally, the Government aims to foster the development of innovative growth directions for the company.

Under the terms of the transaction, ArcelorMittal received consideration on closing of $286 million, with a negative impact on equity of approximately $800 million.  

Commenting, Lakshmi Mittal, Executive Chairman, and Aditya Mittal, CEO, ArcelorMittal, said:

“We would like to take this opportunity to thank the employees of ArcelorMittal Temirtau for everything they have contributed over the past 28 years. While the business faced some serious challenges, there were also many notable achievements which should be a source of pride. ArcelorMittal Temirtau was a very valued part of ArcelorMittal, and we leave with respectful memories of Kazakhstan and all those who partnered with us.”

ArcelorMittal has also made a contribution of KZT 16 billion (c. $35 million) to the Kazakhstan Khalkyna Foundation (https://qazaqstanhalqyna.kz), a charity that supports social well-being in Kazakhstan. ArcelorMittal’s contribution will be focused on healthcare and education, with 50% being invested in Temirtau and 50% invested in the broader Karaganda region.

ENDS