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UK-Liberia INVESTMENT FORUM 2012 14 Sept 2012 Joseph Mathews, Head of Government & Community Relations, Mining.

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Presentation on theme: "UK-Liberia INVESTMENT FORUM 2012 14 Sept 2012 Joseph Mathews, Head of Government & Community Relations, Mining."— Presentation transcript:

1 UK-Liberia INVESTMENT FORUM 2012 14 Sept 2012 Joseph Mathews, Head of Government & Community Relations, Mining

2 1 Disclaimer Forward-Looking Statements This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words believe, expect, anticipate, target or similar expressions. Although ArcelorMittals management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittals securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the SEC) made or to be made by ArcelorMittal, including ArcelorMittals Annual Report on Form 20-F for the year ended December 31, 2011 filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

3 Company Overview Liberia railway

4 3 Relentless focus on safety * IISI-standard: Fr = Lost Time Injuries per 1.000.000 worked hours; based on own personnel and contractors Safety remains the No1 priority for ArcelorMittal ArcelorMittal Mining segment injury frequency rate* relative to peers ArcelorMittal Group injury frequency rate* (Steel and Mining) –Mining Segment Safety performance has also improved significantly –Trending towards world class standards –Group Health and safety performance has improved significantly since 2007 –LTIF rate has more than halved and group is on track for 2013 objectives Long term safety targets trending towards world class

5 4 Diversified leader in steel & mining 4 th Largest iron ore producer (2011 MT) Largest steel producer (2010 crude steel mt) Steel companies Diversified steel business (by product and geography) with rapidly expanding mining operations ArcelorMittal Steel business Worlds No1 steel producer (~ 6% of world crude steel output) 2011 EBITDA of US$10.1bn; only ~40% generated from steel business in Europe and North American Balanced portfolio of cost-competitive assets in both developed and developing markets (No1: EU; N Am; Africa, LatAm, CIS) Broad range of high-quality finished and semi-finished carbon steel products; Outstanding distribution networks Global presence unrivalled knowledge base and benchmarking ArcelorMittal Mining business 2011 EBITDA of $3.1bn based on 28Mt iron ore and 4.9Mt of coal shipped at market prices Represents ~30% of Group EBITDA in 2011 4th largest iron ore producer; Low 2nd-quartile cash cost for iron ore World-class iron ore reserve and resource Leverage ArcelorMittal managements entrepreneurial spirit which has built the No 1 steel company, Operate in difficult political and geographical environments Developing commercial network Note: Iron ore production from latest public information

6 Geographically diversified mining assets South Africa Iron Ore** * Includes share of production ** Includes purchases made under July 2010 interim agreement with Kumba (South Africa) Mining business portfolio Key assets and projects USA Iron Ore Minorca 100% Hibbing 62%* Mexico Iron Ore Las Truchas & Volcan 100%; Pena 50%* Liberia Iron Ore 70% Algeria Iron Ore 70% Brazil Iron Ore 100% New projects / exploration Existing mines Mauritania Iron Ore exploration license Canada AMMC 100% Bosnia Iron Ore 51% USA Coal 100% South Africa Manganese 50% Indian Iron Ore & Coal exploration license Ukraine Iron Ore 95% Kazakhstan Coal 8 mines 100% Kazakhstan Iron Ore 4 mines 100% Russian Coal 98.3% Iron ore mine Non ferrous mine Coal mine Coal of Africa 15.98% Canada Baffinland 70% 5

7 Mining reported separately since Q1 2011 All raw materials consumed from ArcelorMittal mines that could practically be sold outside the Group are now transferred internally at market prices Production from captive mines (limited by logistics or quality) continues to be transferred at cost-plus to our steel facilities Mining segment reported 2011 EBITDA of $3.1bn based on 28Mt iron ore and 4.9Mt of coal shipped at market prices (internally and externally) Mining segment represents ~30% of Group EBITDA in 2011 Steel segments are now more comparable on a like-for-like basis driving performance improvement New Mining segmentation promotes improved operating decisions and optimal capital allocation 6 Segmental EBITDA 2011 Significant contribution to group EBITDA; more stable than steel EBITDA

8 7 Industry leading growth pipeline ArcelorMittal iron ore production growth plan (KT) Marketable production Cost-plus production ArcelorMittal 2015 iron ore growth plans on track ArcelorMittal iron ore growth plan (MT) Canada / Brazil Liberia Phase 1 & 2 Target 10% production growth in 2012 for iron ore Strategic contracts forecast of 16Mt by 2015 Target iron ore ~100MT by 2015 (incl. strategic contracts)

9 Liberia Update Liberia railway

10 Liberia Iron Ore Mines Ore deposits at Tokadeh, Gangra & Yuelliton Phase 1 DSO mining from Tokadeh & Gangra Concentrator planned in Phase 2 at Tokadeh Railway link from Tokadeh to Buchanan (250 Km) Railway workshop and Port at Buchanan 9 ArcelorMittal Liberia

11 Commenced mining last year with first shipment in September 2011 10

12 Mining 4 million tons of DSO annually. 11

13 Shipped over 2.2 million tons to date 12

14 Liberia development 13 Liberia development on track with additional market opportunities under study Liberia Strategic trials in high growth market of South East Asian market Liberia greenfield planned expansion (Million MT) Liberia commercial development approach Liberia development Primary target market Potential new market Iron ore mine Phase 1: 4 mtpa DSO –Commercial ramp up H1 2012. Trials at selected ArcelorMittal Steel European plants and a range of Chinese mills –Build portfolio of long term contracts which can be transitioned into higher grade Phase 2 product supply from 2015 Phase 2: 15 mtpa concentrate from 2015 –Develop long term supply contracts to sinter plants –Studying opportunities to extend market reach

15 14 This has been one of the most successful and unforgettable Olympic and Paralympic Games ever and for ArcelorMittal to have been a part of it is something that we are all extremely proud of – it has been a great symbol of what steel can achieve. - Lakshmi N. Mittal 130,000 Visitors 3 Proposals 1 Queen The ArcelorMittal Orbit becomes one of the stars of the London Olympic Games.

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