ArcelorMittal has completed the sale of its Kazakhstan-based Temirtau steel and mining operation to the Qazaqstan Investment Corporation (QIC), a state-controlled direct investment fund, Kallanish notes. Ownership will later be transferred to Kazakhstan’s Allur Group.

ArcelorMittal and the Kazakhstan government were in discussions for months to agree on a sustainable path forward for the integrated steelmaking asset, located in the Karaganda region.

ArcelorMittal will receive $286 million from the sale, and a further $250m as repayment of outstanding intra-group dues. The company will also receive an additional sovereign-fund guaranteed payment of $450m, paid in four equal annual instalments, as repayment of an intra-group loan.

All ArcelorMittal Temirtau assets have been transferred on an “as is” operational basis, meaning QIC has now assumed control and accountability for Temirtau’s operations, which will be renamed, ArcelorMittal notes.

The steelmaking group has also made a donation of approximately $35m to the Kazakhstan Khalkyna Foundation, focused on healthcare and education projects in the Karaganda region.

According to the Ministry of Industry and Construction of Kazakhstan, the state fund has assumed full management and responsibility for the activities of Temirtau. “The new owner, the government of Kazakhstan, is taking all measures not only to preserve and improve the efficiency of the business processes of these enterprises, but also strives to ensure their stable operation and implementation of innovations as much as possible,” it adds.

Industry and construction minister Kanat Sharlapaev said at a briefing that Kazakh businessman Andrej Lavrentiev will later become the new majority owner of Temirtau. “100% of the shares of ArcelorMittal Temirtau were first transferred to the state company Qazaqstan Investment Corporation, and they will then be transferred to the Allur Group of companies [headed by] Lavrentyev,” Sharlapaev observed.

According to him, about $3.5 billion will be invested in the firm over three years. The minister also said that he considers it fair to restore the enterprise’s historical name, Karmet.

Earlier, Kazakhstani authorities announced they were engaged in attracting new investors for ArcelorMittal Temirtau, following a spate of incidents at the firm’s mines (see Kallanish passim).

In 2022, Temirtau registered the best result of the last 14 years for rebar production. Volume amounted to 436,000 tonnes, with shipments at 427,000t. The plant also produces hot and cold rolled coil, as well as coated coil.

Kazakhstan’s steelmakers saw January-October steel output increase by 12.6% on-year to 3.25 million tonnes.