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ArcelorMittal Kryviy Rih. September 2008. Production of Hot Metal , Steel and Rolled Products. 000 t. 8 700. 8 410,0. 8 300,0. 8 081,6. 7 600,0. 7 500,0. 7 450,0. 7 650. 7 350,0. 7 208,3. 7 138,9. 6 933,5. 6 844,6. 6 600. 6 159,0. 6 121,7. 5 908,1. 5 891,6. 5 550. 4 500.
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ArcelorMittal Kryviy Rih September 2008
Production of Hot Metal, Steel and Rolled Products 000 t 8 700 8 410,0 8 300,0 8 081,6 7 600,0 7 500,0 7 450,0 7 650 7 350,0 7 208,3 7 138,9 6 933,5 6 844,6 6 600 6 159,0 6 121,7 5 908,1 5 891,6 5 550 4 500 2001 2005 2007 2008 2010 forecast forecast Hot metal production Steel production Rolling production 2
Budget Contribution *Assignments to budget for 2005 are shown less dividend payments to the tune of 667,5 mln. UAH in respect of the Governmental shareholdings. 3
Investmentinto Refurbishment, Modernization and Reconstruction of the Fixed Assets Mln.UAH 3 179,2 3 500,0 2 490,0 2 800,0 2 224,9 2 100,0 1 196,8 1 400,0 694,7 700,0 0,0 2001 2005 2007 2008 estimated 2010 estimated 5
Environmental Protection Measures Mln.UAH 449,5 500,0 384,5 372,4 400,0 300,0 200,0 89,8 100,0 25,8 0,0 2001 2005 2007 2008 estimated 2010 estimated 6
Conditions of the SPA dd. 28.10.05 # KPP-497 concerning shareholdings of OJSC “Kryviy Rih Mining-Steelmaking Works” in 2007 were fulfilled. • P.11.2.1.3 reg. modernization of Coke-oven batteries complex #3 і 4 (2006-2007) with implementation of environmental actions. • The modernization, and actually greenfield construction of the Coke-oven batteries complex was commenced in January 2004, and completed: • - in respect of the COB #4, in January 2007 (Certificate issued by the Working Commission dd. 18th of January 2007) • - in respect of the COB #3, in December 2007 (Certificate issued by the Working Commission dd. 25th of December 2007). • Commissioning Certificate issued by the Governmental Committee was approved according to the Resolution of Kryviy Rih Municipal Executive Committee #656 dd. 03.09.2008. • The total volume of coke produced by this complex over a period starting from its commissioning made more than 900 thousand tons already. 8
Conditions of the SPA dd. 28.10.05 # KPP-497 concerning shareholdings of OJSC “Kryviy Rih Mining-Steelmaking Works” in 2007 were fulfilled. • P. 11.4.1.3 reg. modernization of Desulphurization Shop at the Coke and By-product Plant aimed at achieving COG cleaning level up to 0,5 g/m3 of H2S (2007); • The reconstruction of the facility was performed by two launching complexes. • The first complex – collection and regeneration unit for COG cleaning. • The second complex – unit for production of the sulfuric acid, where the burning of the hydro sulfuric gas takes place. • The construction of the first launching complex was commenced in January 2006 and completed in December 2007 through the signing of the Certificate of the working commission dd. 27th of December 2007. • Commissioning Certificate issued by the Governmental Committee was approved according to the Resolution of Kryviy Rih Municipal Executive Committee #656 dd. 03.09.2008. • Measurement taken in May-August 2008 proved that H2S content in refined COG made 0,04-0,4 g/m3 that by far exceeded SPA commitments. 9
Conditions of the SPA dd. 28.10.05 # KPP-497 concerning shareholdings of OJSC “Kryviy Rih Mining-Steelmaking Works” in 2007 were fulfilled. • P. 11.3.11 reg. social and welfare improvement expenses at the level not less than 0,5% of the Company’s sales per annum. • Account 035 “Net Profit (Revenue) on Sales of Products (Goods, Works, Services)” at Statement #2 “Profit and Loss Accounts Format” in 2006 amounted to UAH 14 399 004,963 thou. • According to SPA commitments standard rate for welfare improvement expenses in 2007 made UAH 71 995,0 thou. • Actually in 2007 the Company spent for these purposes UAH 78 061,0 thou. or 0,54 % of the Company’s sales that by far exceeded SPA commitments. 10
Conditions of the SPA dd. 28.10.05 # KPP-497 concerning shareholdings of OJSC “Kryviy Rih Mining-Steelmaking Works” in 2007 were fulfilled. • P. 11.3.15 reg. Collective Bargaining Agreement fulfillment to the full, making Collective Bargaining Agreements for next years with compulsory consideration of norms and provisions of the Ukraine Mining-Steelmaking Industrial Agreement and norms and social guarantees of the previous CBA. • OJSC “ArcelorMittal Kryviy Rih” staff Conference held on April 2, 2008 declared work of the Company’s Management and Trade Union in terms of the SPA fulfillment in 2007 satisfactory. • With Letter dd. 14.05.2008 #1-42 the Company’s Management and Trade Union once again proved that compulsory norms and provisions of the Ukraine Mining-Steelmaking Industrial Agreement and norms and social guarantees of the previous CBA had been considered in CBAs for 2005-2006 & 2007-2008 (with amendments and additions). • With Letter dd. 28.08.2008 #03/507 the Central Trade Union of the employees of the Ukrainian Mining-Steelmaking Industry confirmed that AMKR Collective Bargaining Agreement was in line with Industrial Agreement and fulfilled to the full. 11
Future development • The future development of the OJSC «ArcelorMittal Kryviy Rih» includes 12 MT of steel and 30 MT of ore expansion plans (construction of the new Sinter Plant – 10,16 MT • modernization of COB # 7, construction of PCI at BF-9, construction of the new BOF Shop – 5,2 MT and others). • More than USD 3 bln. are to be spent for these purposes. 13
Bottlenecks Land allotment: • For construction of tailing-ponds and dumps at the Open Mines • For construction of new facilities in the BF-9 area • For construction of houses for the Company’s employees. 13
The help to the regions which have suffered from flooding in Ukraine • The company sent 30 tons of steel products • 20 tons of foodstuff • Employee donations to flood victims • About 1 million grivnas allocated to accommodate children in camp “Parus”- 600 children from Ivano-Frankovsk are currently improving their health 14