PJSC ArcelorMittal Kryvyi Rih is the biggest plant of the mining and steel complex of Ukraine. This plant is a part of ArcelorMittal international company, world steel producer number 1 and one of the largest foreign investors in Ukraine.

PJSC ArcelorMittal Kryvyi Rih took the first place among other Ukrainian steelmaking companies by the amount of paid taxes and dues. Last year, the budget received UAH2.9 bln as the company’s direct tax payments, out of which UAH2 bln – tax payments to the state budget (including UAH217 mln of ecology tax) and UAH869 mln – to the local budgets. Direct payments to Kryvyi Rih municipal budget were as of UAH854 mln: almost UAH314 mln are the land fee, UAH5 mln are the real estate tax and over UAH535 mln are employment taxes. Moreover, the company paid as of UAH614 mln of single social contribution and almost UAH4.2 bln of VAT while importing raw materials and inventories. Therefore, in 2017, the total of the company’s payments to the budget and extrabudgetary trust funds increased by 22% versus 2016 – from UAH6.3 up to UAH7.7 bln. The amount of payments increased mainly due to profits tax and VAT for import. Also, last year, the total of single social contribution increased by more than UAH59 mln due to increase of payroll fund. Since May 2017, the salary of the company’s employees was increased up to 70%.

During 12 years, since the new owner has taken over the plant, PJSC ArcelorMittal Kryvyi Rih paid over UAH42 bln of taxes and dues to the state.

INVESTMENTS

PJSC ArcelorMittal Kryvyi Rih investments increased by 47% in 2017. Capital and operating expenditures of the plant increased versus 2016 – from UAH6.1 up to 9 bln. This money was spent for new facilities construction and equipment capital repairs, as well as environment improvement. Last year, the сompany started construction of two new continuous casting machines (CCM No.2 and 3). Each of these casters will have capacity of producing 1.4 mln tonnes per year billets (capacity of existing CCM No.1 is 1.2 mln tonnes per year) and wider range of products (the plant will be able to produce 150X150 mm and 130X130 mm section billets). The construction on site has already progressed, steel structures installation is ongoing, equipment supplier has been fixed- SMS Group. The new machines are to be commissioned by the end of 2018. Reconstruction of coke oven batteries No.5 and No.6 is on the final stage. In fact, the company is constructing new batteries and it is the only company in this country that does it. Battery No.6 achieved the designed coking period in July 2017 and battery No.5 was put on the heating up mode in mid-December, it is going to be commissioned in March – April this year. The objective of this project is to increase the amount of own coke and coke oven gas production (to reduce natural gas and coke supplies share), and to reduce emissions as well. The capacity of new batteries is 1 mln 60 thousand tonnes per year. Last year, reconstruction of the company’s second block of BOFs (Nos.4, 5, 6) was completed. During this reconstruction new gas cleaning plants were installed. Except for emissions reduction, this project made it possible to reduce water and power consumption, tap-to-tap time and increase BOFs yield. Moreover, closed loop system for BOF gas cooling was implemented at BOF No.4, 5. The similar system will be implemented at BOF No.6 in Q1 2018. Reconstruction of the first BOFs block (Nos.1, 2, 3) will take place in 2018-2021. The project presumes the construction of new gas cleaning plants. PJSC ArcelorMittal Kryvyi Rih keeps modernizing Sinter Shop No.2 in order to reduce the company’s environmental footprint, increase its yield and reliability of equipment. In 2016, sinter machine No.6 was revamped, in 2017 – sinter machine No.5 (now under commissioning). New aspiration system was

installed and gas cleaning plants were replaced, more efficient (dry-type) dust collection system with ESPs is used at each machine. As a result, the emissions were reduced by 500 tonnes at each sinter machine. In 2017, the construction of one more important facility – the first stage of new tailing pond “Tsentralnoye” – was completed. The purpose of this specific hydrotechnical structure is to store the wastes of beneficiation process. The new facility was constructed following international and state standards – using modern technologies, certified equipment and materials, which mitigate the environmental footprint at adjacent territory. As for two other tailing ponds, – “Mirolyubovskoye” and “Obyedinyonnoye” – the works for extending their capacity are being performed now and will continue in 2018 as well. The investment program of 2017 included large-scale upgrade of mining equipment as well. Last year, the Company purchased 11 new BelAZ trucks, each with carrying capacity of 136 tonnes. And in total, during last two years, the company purchased 22 heavy trucks, so now its fleet is half-upgraded. Moreover, overhaul of five CATs, two BelAZs, five bulldozers, loading truck, land leveler and others machinery was completed. The re-equipment of separation and filtration facilities was launched at beneficiation plants. The project on implementation of separate ore beneficiation from the open pits No.2 and No.3 helped to significantly improve a range of key indicators: reduce the content of moisture and silicon in concentrate, increase Fe content by 0.5% versus basic level. Moreover, this project did not require any investments. In future, the Company is planning to keep increasing concentrate production to cover its own needs and increase the export of concentrate. In 2018, PJSC ArcelorMittal Kryvyi Rih will continue implementation of its investment program and modernization of its structural subdivisions. The total investments in production development will make USD1.2-1.5 bln by 2020.

 

 

 

SOCAIL AREA

The social standards of PJSC ArcelorMittal Kryvyi Rih remain ones of the highest among mining and metallurgical companies of Ukraine. In 2017, PJSC ArcelorMittal Kryvyi Rih spent 340.6 million UAH for implementation of social programs for its employees and members of their families. 246.7 million UAH out of this amount were allocated for improvement of the social and living conditions, as well as for recreation, health improvement and treatment of the company’s employees and members of their families. The company spent 93.9 million UAH to maintain the social infrastructure and cover the social benefits. PJSC ArcelorMittal Kryvyi Rih has the largest social infrastructure among the other companies in the industry. There are two children camps, two recreation centers, three countryside rest camps, and health care center Dzherelo. All of them are fully financed by the company. The employees and members of their families get the holiday packages at the preferential price. The rest in the countryside rest camps is free for them. More than 6 thousand employees and their family members had a rest in the recreation centers in 2017. More than 5.1 thousand people could rest and improve their health in the resorts of Ukraine and abroad. Last year, the health care center Dzherelo hosted more than 2.1 thousand employees and pensioners of

the company. The social policy of the company is also focused on the children of the employees. This summer 4.2 thousand kids had a rest on the seaside in the children camps, working in four 18-day shifts. The insurance amount per 1 child was 15 thousand UAH. PJSC ArcelorMittal Kryvyi Rih continues its education projects for children of its employees. The fourth season of free studying at English and IT schools is opened. During last 3 years over 2 000 children studied English and more than 1 000 – IT. The age of pupils is from 6 to 16 years old. There are 10-12 kids in each group, that makes the studying process more efficient comparing to the usual school class. Last year, the company spent more than 2 million UAH for these purposes. Moreover, the company provided the financial support to the separate categories of employees: single mothers and fathers, widows, widowers, foster parents, multi-children families, devoting it to the beginning of 2017 school year. The payment was also granted for the children under 16 years old on the occasion of the Knowledge Day. The New Year’s gifts for the employee’s children in the age of 1-14 years old were purchased as well. One more important area of the social policy is the employee’s health and prevention of the occupational diseases, regular medical examinations. With this purpose, PJSC ArcelorMittal Kryvyi Rih owns the medical center, including 2 polyclinics and 15 first aid facilities. Since 2006, the voluntary medical insurance is provided at the company cost. The medical insurance contract covers the expenses in cases of diseases or injuries. The amount of insurance cover was increased from 50 to 100 thousand UAH. Last year the expenses of the company for the medical insurance made more than 12 million UAH. Besides the main social programs, the company refunds for its employees the part of expenses for houses heating during winter period: December through February inclusively. The amount of monthly payment is 800 UAH (before taxes). This winter approx. 70 million UAH have been allocated for this purpose – and it’s almost ten times more than in 2014 and 2016. In 2018 PJSC ArcelorMittal Kryvyi Rih guarantees the retaining of all the social benefits and guarantees for its employees. Also, the new social projects will appear. Thus, since 2018 the pilot project Package Tour for Leave has been launched. Every employee has the opportunity to choose the holiday package for having a rest abroad or in Ukraine in the travel agency, and the company refunds the part of its cost. The amount of refund depends on the frequency of using this benefit. The maximum amount to be refunded is 10 000 UAH. The management of PJSC ArcelorMittal Kryvyi Rih does its best to support the employees in the difficult period of changes in the metallurgical industry and Ukraine.

ENVIRONMENT

PJSC ArcelorMittal Kryvyi Rih will allocate 8 MUAH for environmental projects implementation in Kryvyi Rih and Dnipropetrovsk region. These projects are included into city and regional programs aimed at environmental issues elimination and environment conditions improvement. PJSC ArcelorMittal Kryvyi Rih will finance implementation of new dust suppression technologies on dumps and industrial sites, purchase of medical equipment for Kryvyi Rih Municipal Oncology Center and ambustial division of Kryvyi Rih Municipal Clinical Hospital No. 2. Money will be also allocated to create landscape recreational park “Shaly Rocks”. The company will provide funding for inspection of Saksahanskiy tunnel located within the future geopark ensuring restoration of its flowrate capacity and safe operation. PJSC ArcelorMittal Kryvyi Rih will also continue area beautification activities in Bogdan Khmelnitskiy Park.

Mitigation actions to reduce the environmental impact are being taken by the company according to environmental programs of Kryvyi Rih (2016-2025) and Dnipropetrovsk region. In 2016-2017, PJSC ArcelorMittal Kryvyi Rih invested 959 MUAH in fulfilment of environmental program of Kryvyi Rih. In total 66 actions are implemented by the company as a part of the program. 8 actions have been already implemented in full, 21 actions are being implemented on an annual basis and 37 actions are in progress. In 2017, pollutants emissions were decreased by 7.9 K t, wastewater discharge was decreased by 2.8 M m3 and wastes disposal was decreased by 2.2 MT as a result of city program fulfilment. In 2017, the investments of PJSC ArcelorMittal Kryvyi Rih in environment almost doubled as compared to 2016 – from 472 up to 851.2 MUAH.

 

PJSC ArcelorMittal Kryvyi Rih is the biggest plant of the mining and steel complex of Ukraine