Project description
and objectives:
|
The proposed project is to support further improvements to the Mittal Steel
Temirtau’s (“MST”) health and safety practices at its coal mines in Karaganda
with the aim to bring them in line with international best practice.
The proceeds of the EBRD financing would be used for capital expenditures
associated with the improvement of health and safety standards in the coal
mines. Key investment areas will be gas monitoring and management systems,
degassing and ventilation equipment upgrades, upgrades of electrical equipment
and prevention of coal face collapses and roof falls.
|
Transition impact:
|
-
Setting standards of corporate governance and business conduct
Mittal
Steel will aim to introduce industry best practice into its coal mining
operations in Kazakhstan. In the context of the Project, Mittal Steel will aim
to transfer the knowledge and specific industry expertise acquired from other
international mining operations to MST’s coal mines.
-
Demonstration effect and institutional strengtheningThe demonstration
effect both to other mining companies and to the government is expected to be
high.
|
The client:
|
The beneficiary of the EBRD loan will be Mittal Steel Temirtau the largest
steelworks in Kazakhstan. MST is wholly owned by Mittal Steel Company N.V.
(“Mittal Steel”), the largest steel company in the world which recently merged
with Arcelor, the second largest global steel company. MST’s operations
comprise the steel works as well as 8 coal mines.
|
EBRD finance:
|
Loan for USD 100 million.
|
Total project cost:
|
USD 500 million.
|
Environmental impact:
|
The proceeds of this loan facility are dedicated to health and safety related
investments and the implementation will result in significant benefits. The
project has been screened B/1, requiring an environmental analysis of the
proposed investment programme and an environmental audit of MST's steel
production and mine facilities as well as corporate environmental management
practices. An Environmental Action Plan (EAP) is currently being finalised to
allow for effective implementation and monitoring by the Bank. The EAP will
include measures to reduce atmospheric emissions, modernise the existing water
supply and sewage systems, prevent spills and soil or groundwater
contamination, introduce energy efficiency measures and improve safety. MST
will be required to implement and adhere to the Environmental Action Plan in
all aspects and ensure that all relevant milestones included in the
Environmental Action Plan are met in a timely manner.
|
Technical
cooperation:
|
None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
Mr Sanjay Kumar Verma
1, Republic Avenue
101407 Temirtau,
Karaganda
Kazakhstan
Fax: +7 (32139) 69911
|
EBRD contact:
|
Holger Muent, Operation Leader: muenth@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
