ArcelorMittal, the world's largest steel producer, is considering halting operations at two of its three Russian coal mines bought last year from competitor OAO Severstal until market conditions improve.
This, however, would be done if the company's proposed comprehensive programme of cost saving and restructuring of the workforce at Anzherskaya and Pervomayskaya mines does not result in sustainable operations of the mines, ArcelorMittal spokesperson said in an emailed company statement.
"...if the cost reduction programme does not result in sustainable operation of the mines, the process of temporary dry conservation of Anzherskaya and Pervomayskaya mines would be initiated until market conditions improve," the L N Mittal-led company said.
In Kuzbass territory of Russia, ArcelorMittal owns three mines -- Berezovskaya, Pervomayskaya and Anzherskaya -- besides the Severnaya washery. It had acquired the mines and associated assets for USD 720 million last year. At present, there are 5,830 employees working in these enterprises.
Facing the heat of the global economic slowdown that has led to challenging and unpredictable market conditions, the steel major said it would go for restructuring of the workforce at its Russian mines, which produced 2.7 million tonnes of coal and 1.3 million tonnes of coal concentrate in 2008.
As part of the restructuring, the company would introduce voluntary retirement programme and redeploy key officials from Pervomayskaya and Anzherskaya mines to Berezovskaya mines.
The steel major said the restructuring would be in line with the Russian Federation's labour laws and collective labour agreements.
Even as the company is planning to temporarily idle Anzherskaya and Pervomayskaya mines, it said the Berezovskaya mines will continue normal operations and contracts for the supply of new equipment will be implemented.
Source: Economic Times
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