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EBRD supports Mittal Steel Temirtau coal mines modernisation
$100 million loan to improve health and safety standards
The EBRD is providing Mittal Steel Temirtau in east-central Kazakhstan with a
$100 million loan. The funds will support the company’s plans to modernise the
coal mines to bring them in line with international best practice in terms of
health and safety standards.
The project is the first in a wider EBRD initiative to support improvements to
environmental, health and safety practices in mines in the Bank’s countries of
operations. Similar projects are in the initial stages of preparation.
Mittal Steel Temirtau is a fully integrated steelworks with an annual capacity
of 5.5 million tonnes. It owns 15 coal and iron ore mines and recently decided
to increase annual production of the coal mines.
Operational safety has been improved since Mittal Steel took over operations
in 1996 and there has been a decline in the number of accidents, but there
have been two tragic methane gas explosions in recent years and an audit
report has also found room for improvement.
Mittal Steel Temirtau will use the EBRD funds for projects including gas
monitoring and management systems; degassing and ventilation equipment
upgrades, upgrades of electrical equipment and prevention of coal face
collapses. Staff training programmes will be another key element of the
project.
The EBRD will monitor the implementation of the programme very closely. The
Kazakh authorities and the EBRD have also engaged in a policy dialogue to
adapt the regulations for the sector to international best practice.
Narendra Chaudhary, CEO of Mittal Steel Temirtau, said: “This is another step
in our extremely constructive cooperation with the EBRD aiming at developing
our coal mines in Kazakhstan into world class operations.”
EBRD President Jean Lemierre welcomed the efforts of the ArcelorMittal Group
to improve the safety of their mines in Kazakhstan. “New safety standards will
be set”, he added.
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