Arcelormittal published a statement regarding the situation in Senegal

The largest metallurgical company in the ArcelorMittal world, the recently lost court with the government of Senegal, relatively non -compliance with investment, published a statement regarding this issue.

"In 2007, ArcelorMittal Holdings AG entered into an agreement with the state of Senegal regarding the integrated project to extract iron ore and the development of the deposit infrastructure and related objects. The project remained unrealized in accordance with the initial graphics due to a combination of factors, including not only the economic situation, but also due to the fact that during the initial phase of the study received Assets turned out to be less attractive/lower quality than was originally assumed, ”the company said.

Recall that Arcelormittal began to be interested in the mentioned deposit in Senegal back in 2007 and planned to put it into operation in 2011. The company intended to invest 2 billion 200 million dollars in the project, including building a new port near Dakar and a 750-kilometer railway line connecting it with a deposit in the east of the country.

The decision of the Senegal Arbitration Court is the first in the long history of the difficult relations of ArcelorMittal Holdings AG and the government of the country. This decision suggests that Senegal has the right to terminate the 2007 agreement. The next meeting of the tribunal will determine the degree of responsibility of ArcelorMittal, as well as the number of any damage that can be awarded to compensation in Senegal.

"Arcelormittal will actively defend itself from any claims for damages in the framework of the second stage of the arbitration proceedings," emphasizes in its official statement.