Explosion Accident Of 70 Million Tons Steel Giant

On October 29, local time, Kazakhstan’s Ministry of Emergency Situations stated that the Kostenko plant in Karaganda Region operated by ArcelorMittal-Temirtau, a local subsidiary of steel manufacturer ArcelorMittal (MT.LU), The death toll from the mine explosion has now risen to 45, with one person missing.

A fire broke out in the Kostenko coal mine in the early morning of the 28th local time and triggered a methane explosion. The explosion was so powerful that the telecommunications system in parts of the city was temporarily paralyzed. There were 252 people underground at the time of the accident. Karaganda Oblast is one of the energy bases of Kazakhstan and is famous for producing high-quality coking coal.

According to reports, 18 people have sought medical assistance. Kazakh President Kassym-Jomat Tokayev expressed his condolences to the families of the victims and declared October 29 a national day of mourning. He ordered the cabinet to stop investments with ArcelorMittal Temirtau.

About 252 people were working in the coal mine at the time of the accident. The company explained that the fire was believed to have been caused by a small amount of methane gas. "We have stopped work at all coal mine sites in Kazakhstan," he said, adding that "we are doing our best to work closely with the authorities to ensure that the affected employees receive comprehensive treatment and recovery."

ArcelorMittal Temirtau is the local distributor for multinational ArcelorMittal, the world's second-largest steel producer in Luxembourg. ArcelorMittal Group, headquartered in Luxembourg, is a giant in the steel and iron ore mining industries. It is the largest steel producer in Europe and one of the largest steel producers in the Americas. In 2022, its crude steel output reached 68.89 million tons. Employs 320,000 people in more than 60 countries. As of the latest closing, ArcelorMittal Group’s U.S. stock price was trading at US$22.14, with a total market value of approximately US$18.581 billion (approximately RMB 140 billion).

According to the latest Fortune Global 500 list, among the Fortune 500 companies in 2023, ArcelorMittal Group ranks second only to China Baowu with revenue of US$79.8 billion (approximately RMB 584 billion). Ranking second among the world's steel companies.

Fire accidents occurred one after another at the ArcelorMittal Temirtau mine, and safety issues continued to arouse concern. In August last year, a fire broke out in the mine, killing four miners; in November last year, a methane gas leak occurred in another mine operated by the company, killing five people. In recent years, the company has been investigated for violating environmental laws.

The Kazakh government is nationalizing ArcelorMittal Temirtau, and the company confirmed today that it is finalizing a nationalization contract.

Kazakhstan Prime Minister Arihan Smailov announced on the website of the Presidential Palace that the government and the company's shareholders have reached a preliminary agreement and the formal nationalization process is underway.

Kazakhstan's First Deputy Prime Minister Roman Sklyar said last month that the government had begun working with ArcelorMittal Temirtau after growing complaints that it had failed to meet investment obligations and repeatedly violated worker safety regulations. Potential investors negotiate to acquire the company.