|
The
world's largest steelmaker, whose plant in the central town of
Zenica processes iron ore from its Omarska mines in Prijedor,
said in May it planned to cut output by a third to 1 million
tonnes and cut jobs from Sept. 1 to prolong the life of the
mines.
In January, its application to bid for the Serb Republic
government's stake in the nearby Ljubija iron ore mine was
rejected, prompting the steelmaker to warn of risks to the
future of mining in the area.
Ljubija would have provided it with more sustainable ore
supplies over a longer period. The company is still pressing for
involvement in the project, according to sources.
The firm said in a statement it was in talks with the government
of Bosnia's autonomous Serb Republic, where the mines are
located, about "serious issues that currently stand in the way
of a long-term sustainable future" of its mining business.
It said it had "made it clear that without a satisfactory
resolution of these matters, it will have no choice but to
reduce current operational capacity and regrettably,
ArcelorMittal Prijedor's workforce".
ArcelorMittal has idled a series of plants across Europe, cut
production in others and slowed a planned ramp-up of production
at Ilva, Europe's largest steel plant that was acquired by
ArcelorMittal last year.
It said it was looking at further cost-saving initiatives, such
as reducing the working week, cutting contractor costs and using
less expensive raw materials.
(Reporting by Maja Zuvela; Editing by Jan Harvey)
[© 2019 Thomson Reuters. All rights
reserved.] Copyright 2019 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
