ArcelorMittal buys Russian coal as Ukrainian workers die

It is possible that India AM/NS paid a much higher royalty overall for Russian coal. Kpler and LSEG commodity trackers, as well as customs data, show the country imported around 3 million tonnes of coal from Russian ports to Hazira between Moscow's invasion and March 2024.

Steel imports from Russia to Hazira during this period amounted to 48 billion Indian rupees ($586 million), according to government and customs data, including the identified Black Sand Commodities cargo. Although Global Witness and ARIA were unable to verify the origin of these products, these documents indicate that trade from Russian coal miners' subsidiaries accounted for most of this value.

Customs data and bills of lading also appear to show that ArcelorMittal imported Russian coal to its Pecem steelworks in Brazil in 2023.

Of the companies cited in this article, only ArcelorMittal and Nippon Steel responded to requests for comment.

ArcelorMittal highlighted its support for its Ukrainian employees who have been extraordinary and praised their strength, courage and commitment. He said his dedication to them was a fact.

The steelmaker added that he had made considerable efforts to support his colleagues since the start of the war, including providing humanitarian relief and making large financial donations to efforts on the ground by non-governmental organizations (NGOs). ).

It added that it was following kyiv's official policy by keeping its plant open in the country and that its wholly-owned subsidiaries were no longer trading with Russian entities. But the same was not said for AM/NS India.

Nippon Steel, which declined to comment on the study, and ArcelorMittal said their joint venture operates in a manner that is fully compliant with Indian government policies and laws.

In March 2022, a month after the outbreak of war, Geert Van Poelvoorde, CEO of ArcelorMittals for Europe, told Bloomberg According to Bloomberg, the steelmaker would have previously purchased a fifth of its coal in Europe from Russia.

The change is commendable. But what's the point if other ArcelorMittal factories take these orders for Russian coal instead?

ArcelorMittal: gold medalists on climate change?

ArcelorMittal’s coal deals also contradict its goal of “smarter steels for people and the planet” and its attempt to play a role in the energy transition. As an official partner of the Paris 2024 Olympic and Paralympic Games, for example, it produces torches and rings for the games made of low-carbon steel.

While trying to tout its environmental credentials, ArcelorMittal is actively working to expand coal-based steel production in India as the majority shareholder of AM/NS India. This joint venture will almost double its production capacity in Hazira by the first half of 2026, from 8.8 million tonnes to 15 million tonnes of rolled steel products per year, thanks to the construction of two coal-fired blast furnaces.

ArcelorMittal said of these projects: “No excuses are needed to support the growth of the Indian economy. Our stakeholders expect us to commit to decarbonising our operations and to do so while continuing to create economic value. That is what we are focused on doing.

He highlighted his net zero emissions target for 2050 and his CO2 emissions reduction targets for 2030, to which he said he remained fully committed. The steelmaker spoke to Global Witness about its investments in developing new technologies for greener operations, alongside ArcelorMittal's forays into renewable energy in India. He said the Haziras blast furnaces have the potential to use hydrogen and add carbon capture to reduce emissions.

But he added that some of AM/NS India's decarbonization plans depended on reducing the price of clean sources.

However, the Institute for Energy Economics and Financial Analysis (IEEFA) criticized the company's expansion plan in February last year. IEEFA warned that steelmakers' plans were at odds with its targets to reach net zero emissions by 2050. It argued there were no imminent breakthroughs in carbon capture in the coal-based steel production and claimed the technology was underappreciated in other industries.

The research body highlighted that India is a key growth market where technology choices have significant implications on emissions from the global steel sector.

In addition to harming its Ukrainian employees through its business dealings with Russian coal, ArcelorMittal is also undermining global decarbonization efforts.