ArcelorMittal to idle operations at two Russian coal mines

London, Mar 19 (PTI) 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 to PTI.

"...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.