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History of ArcelorMittal Temirtau - Company Timeline

History of Karmet Temirtau

JSC ArcelorMittal Temirtau is an integrated steel company, dominating steelmaking in Kazakhstan. Producing close to 6 million tonnes / year of steel, the business was acquired [when close to financial collapse] by Ispat from the Kazakh Government in late 1995, later becoming part of ArcelorMittal.

Karmet Steel Timeline

  • Soviet Foundation (1958-1960): Construction of integrated steel plant begins in Kazakhstan, pig iron production commences, future president Nazarbaev among early workforce
  • Post-Soviet Privatisation (1995-1999): Near-bankrupt Karmet acquired by Ispat Steel for $450m, power plant and coal mines purchased, open hearth furnaces closed, new pickling line commissioned
  • Major Investment Program (2001-2005): Government agreement on $580m capex program, HDG line investment, blast furnace upgrades, tube plant construction begins
  • ArcelorMittal Era and Safety Crisis (2006-2008): Renamed JSC ArcelorMittal Temirtau, methane explosions kill dozens of miners, widespread strikes over pay and safety, new long product mill commissioned
  • Modernisation and Labour Challenges (2010-2015): Linde air separation unit construction, coal mine safety programs, blast furnace recommissioning, 3000 employee reduction plan, wage cut proposals
  • Environmental Concerns and Nationalisation (2018-2023): 'Black Snow' pollution allegations, pipeline accidents, new air separation unit, coal mine explosions continue, nationalised and renamed 'Qarmet'
Timeline shows evolution from Soviet-era steel plant through privatisation and modernisation efforts, marked by persistent safety challenges in coal mining operations, culminating in state renationalisation after decades of foreign ownership.

The timeline below covers the history of the firm.

  • 1958: Construction of the integrated steel plant begins.
  • 1960: Production of pig iron begins.
  • 1995: Karmet acquired by Ispat Steel.
  • 1996: Acquires 435MW power plant & large local coal mines.
  • 1998: Closure and decommissioning of open hearth furnaces.
  • 1999: New pickling line was commissioned; old polluting line closed.
  • 2001: Gov. agreement reached on $580m capex program.
  • 2002: Investment in second HDG line of 300 kt / year.
  • 2002: Upgrade of BF#3 (capacity increase to 1.8 mt / year).
  • 2004: Official allegations over lack of environmental approvals.
  • 2005: Construction commences at Temirtau of $30m tube plant.
  • 2006: Methane explosions at Lenin coal mine kill dozens of miners.
  • 2006: Strikes take place by coal miners over pay and safety issues.
  • 2007: Change of company name to JSC ArcelorMittal Temirtau.
  • 2007: EBRD agrees $100m loan - coal mine projects [H&S focus].
  • 2008: ArcelorMittal Temirtau commissions new long product mill.
  • 2010: Construction starts of new $120m Linde air separation unit.
  • 2011: Coal seam degas & gas recovery program starts - Lenin mine.
  • 2011: $10.2m project starts - construction of new Tentekskaya mine.
  • 2012: No. 2 blast furnace recommissioned following $109m upgrade.
  • 2012: Labour unrest over wages - backdated 10% pay deal agreed.
  • 2013: Union chief announces 3000 employee reduction plan for 2013.
  • 2014: Q1 2014 steel output reportedly 17% up on 2013 levels.
  • 2015: 25% wage cut proposal: discussions with Gov + unions follow.
  • 2018: Allegations made regarding 'Black Snow in Kazakhstan'.
  • 2018: Pipeline accident at ArcelorMittal Temirtau.
  • 2019: Linde builds new air separation unit, commissioned November 2019.
  • 2023: Fire at Kazakhstanskaya coal mine kills five workers.
  • 2023: Kostenco coal mine explosion kills dozens of miners.
  • 2023: ArcelorMittal Temirtau nationalised and renamed 'Qarmet'.

Notes
  • Amongst the workforce of the Karmet blast furnace which started up in 1960 was Nursultan Nazarbaev - the future president of Kazakhstan.
  • Prior to the 1995 sale of Karmet to Ispat, other unsuccessful attempts were made to better manage the metallurgical combine, including a Kazakh-Austrian jv involving Voest-Alpine.
  • Purchase of Karmet from the Kazakh government was for a consideration of ~$450m. On purchase, Karmet was renamed Ispat Karmet.
  • $580m investment agreement of 2001 with the government of the Republic of Kazakhstan related to capital expenditures for reconstruction of blast furnaces, a continuous caster, coke oven construction, upgrading a tin plate rolling mill and establishment of a galvanising line. It is understood that significant tax concessions for Mittal Steel were associated with agreement regarding this capital investment programme.
  • The miners strikes which followed the September 2006 methane explosion at the Lenin mine had within weeks spread to six other Mittal mines, including the Tentekskaya, Shakhtinskaya, Kazakhstanskaya, Kuzembayev, Kostenko and Saranskaya mines. Note that a specific feature of the Kazakh mines is the presence of methane, which represents a major safety hazard for the Karaganda mines.
  • 2007 loan from European Bank for Restructuring & Development was for investment by ArcelorMittal Temirtau in gas monitoring systems, ventilation equipment, and other upgrades.
  • Long product plant commissioned in 2008 was a $150m 400kt / year facility for the production of rebar, channels, angles, and other structural steel products to be used for the needs of the domestic construction industry in Kazakhstan.
  • In early 2008 the Kazakhstan government ordered ArcelorMittal to improve safety conditions or lose its mining license, after another explosion in January at the company's Abaiskaya mine killed 30 workers.
  • 2015 proposal for a 25% wage cut from August 1st at ArcelorMittal Temirtau was reportedly taken due to "unprecedented market conditions"
  • 2018: Allegations made in January claimed that snow in Kazakhstan turned black because of high pollution levels from the steel plant. Local residents asserted that the plant exceeded legal emissions limits.
  • 2018: Pipelines were destroyed and four people were injured in an accident that took place on 10th November. The fault was attributed to use of steel 20 GOST 1050-84 rather than steel 09G2S in the pipeline construction.
  • 2019: This is Linde's second air separation unit (ASU) at the steelworks, required when ArcelorMittal Temirtau increases production of hot metal in the coming years. The new ASU will be operated by Linde Gas Kazakhstan.
  • 2023: Explosion on 28th October was thought to be a methane blast.
  • 2023: At end-October 2023, soon after the mine explosion, the Kazakh authorities confirmed the nationalisation of ArcelorMittal Temirtau, with the appointment of state-owned private equity fund Qazaqstan Investment Corporation as the new owner.