OREANDA-NEWS. April 1, 2011. State Property Fund of Ukraine has confirmed the accomplishment of OJSC “ArcelorMittal Kryviy Rih” investment commitments as per sales and purchase agreement of the plant during the regular 21st inspection. The inspection, which took place on March 14-17, 2011 was concluding for 2010 and confirmed the investment commitments accomplishment by the plant in 2010. In the final part of the inspection all investment commitments in the industrial, social and environmental protection spheres, the accomplishment of which was planned for 2010, were declared fulfilled. Some of the plant obligations in social sphere were over fulfilled, as evidenced by labor collective conference report since February 24, 2011, during which collective agreement completion report for 2010 was approved.

Rinat Starkov, CEO, OJSC “ArcelorMittal Kryviy Rih”: “The accomplishment of our investment commitments was always matter of principle for us. We have implemented them steadily for all five years since new owner came to the plant. All these five years we have been in the full glare of State Property Fund, which controls our commitments accomplishment. In 2011 we will finish all social obligation fulfillments: till the end of the year we have to carry out all planned social projects, including housing construction for employees. I would like to mention that the plant agreed for extending the validity of social obligations and instead of the five years we will be carrying them out during 6 years. The industrial commitments, the duration period of which was elongated due to force-majeure, we will continue accomplishing them as per sales and purchase agreement”.

The feature of this inspection is that the entire list of obligations, which were controlled during last five years, was declared fully accomplished. During the next inspections, their fulfillment won’t be controlled by State Property Fund. According to the Act of State Property Fund of Ukraine since 17.03.2011, the following commitments are considered to be accomplished:

• To ensure the Society development with the direction of its production operation for output of end products with high degree of processing, thereby providing commercial iron sales no more then 5 (five) % of general production and commercial base metal no more then 16 (sixteen) % of general finished steel production volume;

• To ensure the preservation of main nomenclature of competitive types of products, which existed at the moment of sales and purchase agreement signing;

• To ensure the preservation of economic activity, which were carrying out at the moment of sales and purchase agreement signing;

• To ensure the income (gain) from product sales (goods, works, services) during 5 years, beginning with the moment of sales and purchase agreement signing at the level of at least then UAH 9500 million according to the prices of 2005, taking into account the inflation index;

• To ensure the accruals and tax payment and (compulsory payments) duties as per active legislation of Ukraine;

• To ensure the top-priority product sales of the Community for domestic consumption at market prices;

• The accomplishment of legislation requirements as for economic competition protection;

• Package plan implementation as for manufacturing crushing scheme reconstruction of crossing (2006 – the first 6 months of 2009) and modernization of benefication plants section №№8 of Ore-Dressing Plant-1 and Ore-Dressing Plant-2 (2006-2008);

• Package plan implementation as for coke furnace battery reconstruction №№3 and 4 (2006-2007) with the environmental measures complex introduction;

• 5 sinter machines modernization at sinter plant with modern dust and gas purifying installations launching (2006-2009);

• The construction of mine “Vostochnaya”, which will provide waste ore output and auxiliary output terminal mode to daylight surface (2007-2010);

• The modernization of mail metallurgical units of all intersections with energy-conserving and environmentally friendly technologies and equipment launching (as per units operation allowance);

• The reconstruction of Thermo galvanizing plant-2 with capital repair of turbo-compressor №№9, 11 for supporting hot blast furnace №8 with the blast of required parameters (2006-2008);

• The reconstruction of high-voltage electric-power supply at Section Rolling Shops №1, 2 and Blooming Shop №1, 2 (2006-2008);

• Non-admission to reduce the number of stuff and terminate employment agreement with Community workers at the initiative of customer or his\her authorized body during at least 6 months from the day when he\she got the ownership of shares batch, except the release according to the paragraph 2 and 6 of the section 40 of Labor Code of Ukraine or commitment of such action, for which it is provided discharge by legislation according to the paragraphs 3, 4, 7 and 8 of the sections 40 and 41 of Labor Code of Ukraine;

• The restoration of open pit area, dumps, caving zones of earth surface;

• The reconstruction of desulfurization shop of coke and by-product plant in order to reach the level of coke gas purification till hydrogen sulfide content of 0,5 g\m3 (2007);

• implementation of polygon building for the allocation and burial of enterprise’s industrial and construction waste by means of environmentally conscious method (first six months of 2007);

• implementation of the ecological monitoring system at the main emission points on the public affected area;

• fulfillment of the water-protective measures as for the water resources conservation, sewage quality improvement and their minimization;

• taking the measures as for the reduction of dust catching during the single blasts execution in the open pits of the mining and benefication complex and mine management;

• the handling of special works connected with dust catching on the surrounding areas of dumps, tailings ponds, sludge collectors of the metallurgical production, mining and benefication complex and mine management;

• modernization and reconstruction of intended for nature protection purposes funds at the Public shops.