By ArcelorMittal, the Luxembourg-based steelmaker, experienced a decline in its shares on Monday. This came after the company announced that it had recently signed a preliminary agreement with the government of Kazakhstan regarding the transfer of ownership of its operations in the country to the republic.
At 0919 GMT, Amsterdam-listed ArcelorMittal shares were trading down by 4.6% at EUR20.11.
Over the weekend, ArcelorMittal Temirtau, the company’s subsidiary in Kazakhstan, revealed that discussions regarding the transfer had been ongoing for several months. It also stated that an in-principle agreement had been reached just days before a tragic explosion at its Kostenko coal mine resulted in the loss of several miners’ lives.
ArcelorMittal Temirtau acknowledged in its statement that a number of fatal accidents had occurred at its mines over the past two years due to the complex geology of the region. Despite efforts to stabilize the situation, it stated that a new approach was necessary to ensure the long-term sustainability of its operations.
ArcelorMittal expressed its commitment to swiftly finalize the transaction while also providing support to the families affected by the incident on Saturday.
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