ArcelorMittal: Knowing Our Stakeholders is a Strategic Priority
ArcelorMittal is committed to handling their interactions with stakeholders in a proactive and accountable way that demonstrates the business’s integrity. Shareholders’ continuing engagement is key for the company to maintain their social licence to operate.
“We need the support and understanding of our stakeholders,” said Lakshmi Mittal, Chairman and CEO at ArcelorMittal in a February 2014 letter to employees. “Effective engagement to ensure they have a good understanding of our business and the decisions we take is vital.”
The company has increased its number of local stakeholder engagement plans from 30 in 2012 to 38 in 2013. By understanding what the people most important to the company want, ArcelorMittal is able to prioritize any issues and utilize time and resources in the best ways possible.
One of the company’s most important stakeholder priorities has been providing a confidential and accessible system through which people can report grievances. Most of their sites have a process for accomplishing this – there are 27 mechanisms that cover 87 sites in this regard.
In order to appease stakeholders of all kinds (including employees, governments, regulators, customers, communities, investors, social partners, suppliers, the media and others) ArcelorMittal operates within internationally agreed guidelines and relevant legislation, and works towards meeting the needs of its stakeholders.
“We take pride in our levels of disclosure and invest time into ensuring the information we disclose is relevant and meaningful,” the shareholder portion of their website mentioned.
Arcelor Mittal is also a supporter of the Extractives Industry Transparency Initiative (EITI), which addresses concerns related to the tax and royalty payments made to government by the industry. The initiative is driven by governments at a national level to encourage debate about what kind of contribution mineral resources have on economic and social development.
As an EITI corporate supporter and member of the board since 2013, ArcelorMittal contributes to the annual reporting process of EITI Liberia. The company is also a member of the Association of Mining and Metallurgical Industry of Kazakhstan, and the National Mining Association in the US.
Relationships both inside and outside the sector
Continuing relationships with non-governmental organisations (NGOs) are essential to ArcelorMittal’s business. In Bosnia and Herzegovina, air emissions was the topic of discussion with NGO Ekoforum. The company’s Biodiversity Conservation Programme in Liberia has united several stakeholders in thinking about the impacts the first phase of mining has on biodiversity. The program is in its second year and already showing results.
Sustain our Great Lakes in the United States won the Excellence in Sustainability award from the World Steel Association. There are several partners in the endeavor, including the US Environmental Protection Agency, the US Fish and Wildlife Service, the USDA, Forest Service, the National Fish and Wildlife Foundation, the National Oceanic and Atmospheric Administration and the USDA Natural Resources Conservation Service.
For more information regarding ArcelorMittal’s stakeholder accountability trends and policies, visit their website.
Unmanned train to allow Vale to reopen iron ore plant
Brazilian miner Vale SA will be able to resume operations at its Timbopeba iron ore dry processing plant in up to two months thanks to the use of an unmanned train, the company said in a statement this week.
Vale - Timbopeba iro ore plant
With the train, Timbopeba will be able to operate at least at 80% of its capacity of 33,000 tonnes of iron ore “fines” per day, reports Reuters.
Vale was forced to shut down the plant in the Alegria mine complex recently after labor authorities in Minas Gerais state banned activities close to the Xingu dam due to concerns of a risk of collapse.
Vale said access by workers and vehicles continues to be suspended in the flood zone of the dam due to the ban even though it remains at emergency level 2, which means there no imminent risk of rupture.
But some workers are allowed entry under strict security precautions and they will get the unmanned train going once it has been tested, which would take between one and two months, the company said.
The unmanned train will travel automatically along 16 kilometers (10 miles) of track operated by a system that can control the speed and activate the brakes, Vale said.
Vale announces first ore at Voisey’s Bay mine extension
Vale has reached the milestone of first ore production at the Reid Brook deposit at the Voisey’s Bay mine expansion project in Northern Labrador, Canada - recognised as the safest mine in Canada.