Kazakhstan wants ArcelorMittal Temirtau to modernize its coal production

The government has already amended the contract with the company

Prime Minister of Kazakhstan Alikhan Smailov announced that the contract with ArcelorMittal Temirtau (AMT) has been amended. For the first time in the history of bilateral relations, Kazakhstan now officially requires the company to modernize its coal production and take action on degasification of coal beds.

Kazakhstan had never asked to do this before.

«For the first time, we have put these additional requirements on the contract. Now AMT is obliged to allocate at least $323 million a year for the modernization of its production and $79.7 million for removal of gas from the coal beds,» Smailov said.

According to the prime minister, the cabinet will implement a similar practice for all other subsoil users in Kazakhstan.

Earlier this month, AMT reported a gas emission in the mine named after Lenin. At the time 106 mine workers were underground. As a result, the incident has taken the lives of five workers and severely injured four other men.

Right after the tragedy, President Kassym-Jomart Tokayev ordered an investigation into the incident. Later, he said that AMT had done nothing to prevent such incidents and the government should take tough actions against the company.

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