Authorities in Kryvyi Rih have asked ArcelorMittal to reconsider reported plans to shut down ArcelorMittal Kryvyi Rih and mothball its production facilities. The city council says a closure could trigger mass job losses and create environmental risks.
In a statement on October 28, the city council said acting mayor Yuriy Vilkul had sent an open letter to ArcelorMittal executive chairman Lakshmi Mittal, urging him to intervene personally. Council members said they learned about the possible shutdown from the media and had not been consulted by the company about its consequences.
About 57,000 people worked at the plant before privatization, compared with roughly 17,000 today, according to the city council. Further large-scale cuts could affect thousands of families.
Officials also warned of environmental and industrial safety risks if steelmaking and coke production are halted. Tailings storage facilities, dams and drainage systems need ongoing maintenance and monitoring for hazardous substances. Groundwater continues to flow into mine workings even when production is stopped.
Rather than a complete shutdown, the council proposed keeping some steelmaking operations running with measures to protect workers. It also pointed to domestic demand for steel used in construction and infrastructure restoration.
Another option, it said, would be to continue mining and ship up to 300,000 metric tons of iron ore concentrate a month by rail to ArcelorMittal facilities in Europe, despite restrictions on Black Sea port operations. The council said similar shipments had been made over the past 20 years.
The appeal asks Lakshmi Mittal to preserve the plant’s production capacity, retain as many jobs as possible and avert potential environmental emergencies.
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