David Vint, General Manager, Coal Operations 4 July 2012 Вентилятор главного проветривания

Transcription

1 Supporting development of mining and metallurgy sector in Kazakhstan: How we make coal mining a safer business David Vint, General Manager, Coal Operations 4 July 2012 Вентилятор главного проветривания

2 Disclaimer Forward-Looking Statements This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words believe, expect, anticipate, target or similar expressions. Although ArcelorMittal s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the SEC ) made or to be made by ArcelorMittal or the entities to which it is successor (including Mittal Steel Company N.V. ( Mittal Steel ), including Mittal Steel s Annual Report on Form 20-F filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

3 Mining business portfolio Geographically diversified mining assets * Includes share of production ** Includes purchases made under July 2010 interim agreement with Kumba (South Africa) 2

4 Focus on safety Global picture ArcelorMittal Group injury frequency rate* (Steel and Mining) ArcelorMittal Mining segment injury frequency rate* Long term safety targets trending towards world class Q' Q'12 Group Health and safety performance has improved significantly since 2007 LTIF rate has more than halved and group is on track for 2013 objectives Mining Segment Safety performance has also improved significantly Trending towards world class standards Safety remains the No1 priority for ArcelorMittal * World steel association -standard: Fr = Lost Time Injuries per worked hours; based on own personnel and contractors 3

5 Overview of ArcelorMittal Coal Mining in Kazakhstan

6 ArcelorMittal Coal Mining in Kazakhstan Acquisition in 1996 by Ispat Karmet 15 coal mines at takeover High grade coking coal and thermal coal Coal seams have high gas content and pose risk of coal and gas outburst Major incidents in coal mines in 2004, 2006, and 2008 Coal mining in Kazakhstan is valuable but complex 5

7 Key challenges in Kazakhstan Legal restrictions Ongoing review of mining legislation to update it to global best practices Geological structure of coal seams Coal seams have high methane content up to 25m3/ton posing risks of coal and gas outbursts Journey to Zero Shared Vigilance Challenging barriers to be overcome 6

8 Focus on safety Kazakhstan picture ArcelorMittal Kazakhstan Coal injury frequency rate* Recent developments in Health and Safety In mining H&S policy adopted and implemented Motivation of personnel to work safely strengthened Annual investments in H&S Monitoring injuries, days lost, major incidents. Fatality prevention standards and golden rules introduced Audits by external companies underway Annual H&S awareness days Global H&S agreement with trade unions ( ) Journey to Zero launched ( ) Safety remains the No1 priority for ArcelorMittal Kazakhstan * World steel association -standard: Fr = Lost Time Injuries per worked hours; based on own personnel and contractors 7

9 Key initiatives and performance

10 Modernisation program for coal mines Mining modernization program progressing: Committed $520 million during Q 2012 Investment in 2012 will be in line with program During the economic crisis Health and Safety Investment was not compromised Continued support in Kazakhstan for Steel, Coal and Iron Ore operations World Class techniques and equipment is purchased and commissioned in the coal mines Power generating plant that use methane gas the degassed methane. Manufacturer of the plant - JENBACHER, capacity 1,4 MW 9

11 Technology upgrades Exploration 3D seismic survey at Tentekskaya mine Equipment for underground seismic survey deployed Geological modelling A geomechanical service department created to perform geological modeling Mine Planning Mine planning is carried out taking into account modern technology and world best practices Roadway Support Completed Stress Measurements in the coal seams Introduced anchor bolt support technology in mines Блоковая модель ш. Казахстанская Tentekskaya mine 3D geological model 10

12 Technology upgrades (continued) Degassing 13 block-modular vacuum-pump stations with display of degassing parameters information on the computer in online mode (Germany) have been put into operation. Gas generating station (Janbacher, Germany) with capacity of 1.4megawatts, operating with usage of methane has been put into operation. Cross measure degassing technology (Harworth Energy, England) has been introduced. Investigation of coal seams permeability is ongoing. Methane Monitoring and Detection All mines are equipped with real time Environmental Monitoring Systems. Utilization of methane gas is carried out in boiler-houses of 4 mines with one gas generating station. Ventilation Equipment Replacement of main ventilation fans is in process Upgrading and Replacement of local ventilation is in process Equipment Replacement Glink Powered complexes and Caterpillar powered plow complex Road heading equipment of Russian and Ukrainian manufacturers Conveyors Transport systems Road heading machine P-110 type 11

13 Improving culture: Each person s safety is everyone s safety Own employees: Ongoing work under project Each person s safety is everyone s safety (methodology of world-known specialists on safety DuPont training for safe behavior, identification of hazards and risk degree evaluation Behavioral training for managers, supervisors and employees In April 2012 Coal Division passed 1 st surveillance audit for compliance with OHSAS 18001:2007 Auditing procedures implemented at all levels Sharing best practice Golden Rules Health initiatives. Introduction of standards on Health issues is in process. Our partners: Davis Derby, DMT (Germany), Woelke Inlustrieelektronuk GMBX, Korfman, Caterpillar, Hazemag and others. EBRD H&S Conference in Astana, December 2009, sponsored by ArcelorMittal and ENRC Conference on control and utilization of methane held, Karaganda, June 2012 Breaking through the cultural barriers 12

14 Safety through eyes of employees children

15 Summary

16 Summary Mining is a strategic priority of the Group Operating in Kazakhstan is valuable but complex Clear progress in our safety, performance and operating culture but challenges remain Reducing hazards and risks to as low as possible and journey to zero Remain our key objectives

17 Q&A