ArcelorMittal has detailed its additional commitments on the lease and purchase agreement for Ilva. The additional commitments followed the receipt of a counter-proposal from the Italian Ministry for Economic Development (MISE) tabled by the so-called Extraordinary Commissioners on 19 July, Kallanish learns from the company.

Italian economic development minister Luigi Di Maio had said that ArcelorMittal’s additional commitments to Ilva are still unsatisfactory in order to acquire the Italian steelmaker (see Kallanish 31 July).

“The additional commitments go above and beyond the terms of the Group’s 2017 contract with the Italian Government for the lease and purchase contract of Ilva. These additional commitments, which represent ArcelorMittal’s best and final commitments in the key areas of intervention indicated below, will be formalised by signing a 10-page addendum to the contract following acceptance by ArcelorMittal of all the substantial parts of the counter-proposals of the Extraordinary Commissioners,” ArcelorMittal says in a note.

Regarding the environment, ArcelorMittal will ensure that Ilva’s environmental performance fully complies with European and Italian environmental law through the implementation of the environmental protection measures as set out in the DPCM 2017. The company will significantly reduce Ilva’s emissions, including CO₂, dust, dioxins and other pollutants to levels that exceed best available technologies in Europe. It will also accelerate its investment in, and subsequent launch of, a new €10m ($11.7) research & development centre in Taranto. This will be dedicated to identifying new production techniques with a lower environmental impact.

ArcelorMittal will engage in an annual collaboration between ARPA Puglia, ASL and ARES for the production of a health impact assessment study at Taranto and the area surrounding the steel plant. It will introduce transparency and information-sharing initiatives aimed at the local communities to re-build trust and build understanding, including opening the Taranto site for guided tours and frequent engagement with community representatives. The company is also engaging to invest up to €1 million/year over five years from becoming the operator of Ilva in support of local education, healthcare and entrepreneurs.

Regarding employment, suppliers and circular economy initiatives ArcelorMittal will favour the positive conclusion of the union consultation procedure, taking into account the sustainability of the industrial turnaround plan for Ilva. It will promote the engagement of local suppliers where possible and pay all suppliers in-full and on-time through the application of the best commercial standards within the ArcelorMittal Group. It will implement circular economy strategies and policies in its production processes, including maximising the utilisation of recovered secondary products in the form of process gases and scrap metals and slag.

ArcelorMittal will invest at least €4.2 billion in Ilva over five years, of which more than €1.15 billion will be spent on improving Ilva’s environmental footprint and emissions.