ArcelorMittal Concluded Sale of Kazakh Steel and Mining Operation

SEATTLE (Scrap Monster): ArcelorMittal announced that it has completed the sale of its Kazakh steel and mining operation to a state-run direct investment fund. The assets of ArcelorMittal Termirtau were sold to the Qazaqstan Investment Corporation (QIC), said the company press release.

The company has been in discussion with the Government of Kazakhstan over the past several months to reach an agreement on a sustainable path forward for the assets located in the country’s Karaganda region.

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As per terms of the agreement, the steelmaker has received a consideration of $286 million and an additional $250 million as repayment of outstanding intra-group dues. It will also receive an additional sovereign-fund guaranteed payment of $450 million, which will be paid as four equal yearly instalments.

The assets of ArcelorMittal Termirtau in full have been transferred to QIC on an ‘as is’ operational basis. QIC confirmed that it has now assumed full control and accountability of the acquired assets and that it plans to rename them in future.

Alongside, ArcelorMittal has made a donation amounting to approximately $35 million to the Kazakhstan Khalkyna Foundation, which mainly runs healthcare and educational projects in the region.