ArcelorMittal, the world’s gest steelmaker by shipments, has sold its interest in the Kuzbass coal mines in the Kemerovo region of Siberia, Russia, to Russia’s National Fuel Company (NTK). The assets include the coal mines of Berezovskaya and Pervomaskaya, which together produce 700,000 tonnes of coal a year.
The Luxembourg-based company acquired the Kuzbass mines in 2008 as part of its strategy to secure delivery of coal to ArcelorMittal steel operations in Ukraine. “As our Ukraine steel operations now source coking coal from ArcelorMittal’s mines in Kazakhstan, Kuzbass is no longer a strategic asset for us,” the company said in a statement. “We are pleased to have agreed the sale to NTK as Kuzbass is an important employer in the region and this offers a sustainable solution for employees and other stakeholders.” In the past two years ArcelorMittal, with presence in Europe, Asia, Africa, South and North America, has downsized its operations to adapt to changing demand and could be poised for higher profitability if growth in crucial markets like Europe and the United States continues.