ArcelorMittal’s shares fell roughly 5% in early trading at the Paris Stock Exchange on Monday, following a tragedy at one of its subsidiary’s mines in Kazakhstan on Saturday which resulted in at least 45 deaths.
"No words can adequately do justice to the immensity of the tragedy. Our deepest condolences are extended to the bereaved families. Today, on Monday 30th October, all offices and operations will mark a period of silence at 11.00 am," said the multinational steel giant in a statement.
Shares dropped by 4.94% to €20.03 around 09:40, in a market otherwise up by 0.44%. The mining giant confirmed on Saturday a preliminary agreement to transfer the subsidiary’s ownership to the state.
ArcelorMittal has pledged to conduct this transaction swiftly to minimise potential disruption, according to a company statement.
Since the beginning of the year, the company’s stock has lost over 18%, significantly impacted by China’s slower-than-expected economic recovery.
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Contrary to ArcelorMittal’s decline, other companies in the sector were performing well: Eramet in France rose by 3.56% to €63.95, while in London, Rio Tinto increased by 1.54%, Antofagasta by 1.53%, and Anglo American by 0.86%.
Rescue teams reported on Sunday that the bodies of 45 miners had been recovered, making this disaster the deadliest in the Central Asian country’s history since it became independent from the Soviet Union.
ArcelorMittal operated eight coal mines in Kazakhstan in 2022, with estimated reserves of 208 million tonnes, according to its Fact Book. The company’s steel mines in the country produced 2.7 million tonnes of steel, nearly 6% of its total output.
