ArcelorMittal(MT) - 2023 Q4 - Annual Report

Management Report ArcelorMittal, a global steel and mining leader, manages market volatility and regulatory risks through strategic growth, asset optimization, and ambitious decarbonization initiatives Introduction ArcelorMittal, a global integrated steel and mining leader, adapts to market changes through strategic acquisitions, cost control, and ambitious decarbonization goals, while managing economic, geopolitical, and regulatory risks Company Overview ArcelorMittal is a global integrated steel and mining leader with operations in 15 countries, focusing on diversified, high-value steel and mineral products - ArcelorMittal is a global integrated steel and mining company with significant presence in Europe, the Americas, and Asia, including the AMNS India joint venture[8] - As of December 31, 2023, the company operated 37 integrated and mini-mills in 15 countries, employing approximately 126,756 people[9] - The company produces a wide range of high-quality finished and semi-finished steel products (including flat, long, and tubular products) and mineral products like iron ore and coking coal, sold in approximately 140 countries[9] 2023 Crude Steel Production Geographical Distribution | Region | Crude Steel Production Share | | :------------- | :--------------------------- | | Americas | 39% | | Europe | 50% | | Other Countries | 11% | 2023 Raw Material Self-Sufficiency | Raw Material | Consumption (million tonnes) | Supply from Own Mines/Facilities (million tonnes) | Self-Sufficiency (%) | | :------------- | :--------------------------- | :---------------------------------------------- | :------------------- | | Iron Ore | 74.1 | 42.0 | 57% | | PCI & Coal | 29.9 | 2.0 | 7% | | Coke | 17.3 | 17.0 | 98% | | Scrap & DRI | 26.1 | 15.5 | 59% | - In 2023, the company's achievable annual crude steel capacity was approximately 81.0 million tonnes, with steel shipments totaling 55.6 million tonnes[16] - The company holds a leading market share in the automotive industry (approximately 15% of the global market) and is a leader in advanced high-strength steels (AHSS)[17] - The value plan implemented in 2022 and 2023 has generated cumulative benefits of $0.8 billion, targeting $1.4 billion in structural improvements by 2024[18] - In 2022, the company acquired an 80% stake in voestalpine's HBI plant, and in 2023, completed the acquisition of Companhia Siderúrgica do Pecém (now ArcelorMittal Pecém) in Brazil, along with Riwald Recycling and Italpannelli Germany[19] History and Development of the Company ArcelorMittal, formed in 2007, grew through acquisitions and leverages its global scale, technical expertise, diversified portfolio, and financial strength to lead the steel value chain - The company was formed in 2007 through the merger of Mittal Steel Company N.V. and Arcelor[11] - The company successfully built upon core values of sustainability, safety, quality, and leadership, becoming the first truly global steel and mining company with an entrepreneurial spirit[11] - The company's strategy aims to achieve a leading position in the steel industry value chain by leveraging its global scale, technical capabilities, diversified steel and related businesses (including mining), and financial strength[11] Cautionary Statement Regarding Forward-Looking Statements This annual report contains forward-looking statements based on estimates and assumptions, subject to known and unknown risks, with no guarantee of actual results or updates unless legally required - This annual report contains forward-looking statements based on estimates and assumptions regarding the company's business, future financial condition, operating results, and prospects[28] - Forward-looking statements involve known and unknown risks and uncertainties, and actual results may differ materially from expectations[28] - The company is under no obligation to publicly update or revise any forward-looking statements, unless required by securities and other applicable laws and regulations[28] Key Transactions and Events in 2023 In 2023, ArcelorMittal executed share buybacks, strategic acquisitions, and asset disposals, while exiting Acciaierie d'Italia, incurring a $1.4 billion impairment charge - In April 2023, the company completed a share buyback program announced in July 2022, repurchasing 60,431,380 shares[30] - In May 2023, the company announced a new share buyback program for up to 85 million shares and delivered 57,057,991 treasury shares for the conversion of mandatory convertible subordinated notes[30] - Following an accident at the Kostenko coal mine in Kazakhstan in October 2023, which resulted in 46 fatalities, the company completed the sale of ArcelorMittal Temirtau (Kazakhstan steel and mining operations) in December 2023 for $286 million consideration, plus repayment of $250 million and $450 million in intercompany debt[30][32] - In January and March 2023, the company acquired Riwald Recycling and Italpannelli Germany, respectively, for a total cash consideration of €144 million ($154 million)[32] - In March 2023, the company completed the acquisition of Companhia Siderúrgica do Pecém (now ArcelorMittal Pecém) in Brazil, with an enterprise value of approximately $2.2 billion[32] - In February 2024, the Italian government placed Acciaierie d'Italia SpA (ADI) under special administration, ending ArcelorMittal's involvement and resulting in a $1.4 billion impairment charge recognized in the 2023 financial statements[32][56] Sustainable Development Highlights – Striving to be a Leader in Steel Decarbonization ArcelorMittal aims for 25% global CO2 intensity reduction by 2030 and net-zero by 2050, investing in green technologies, carbon capture, and innovative steel production methods - The company is committed to reducing CO2 emissions intensity by 25% globally (and 35% for European operations) by 2030, aiming for net-zero emissions by 2050[20] - In January 2023, the company invested $36 million in Boston Metal through its XCarb® Innovation Fund to support decarbonization technologies[33] - In May 2023, ArcelorMittal Brasil formed a joint venture with Casa dos Ventos, Ventos de Santo Antonio Comercializadora de Energia S.A., to develop a 554 MW wind power project, expected to meet 38% of ArcelorMittal Brasil's electricity needs by 2030[35] - In June 2023, the company successfully commissioned the Steelanol Carbon Capture and Utilization (CCU) facility in Ghent, Belgium, capable of producing 80 million liters of ethanol annually and reducing 125,000 tonnes of carbon emissions[35] - In June 2023, the company and John Cockerill announced plans to develop an industrial-scale low-temperature iron electrolysis plant (Volteron™), targeting annual production of 40,000 to 80,000 tonnes of steel plates by 2027[35] - In November 2023, the company announced its entry into the Additive Manufacturing (AdM) market, constructing an industrial-scale inert gas atomizer in Avilés, Spain, with an annual capacity of 1,000 tonnes for steel powder production[36] - In November 2023, the company partnered with Schneider Electric to supply XCarb® recycled and renewably produced steel for its electrical cabinets and enclosures, reducing carbon emissions by nearly 70% compared to conventional products[36] - In December 2023, ArcelorMittal Belgium commissioned the Torero plant, converting waste wood into bio-coke for blast furnaces, reducing 112,500 tonnes of carbon emissions annually[37] - In January 2024, the company established a partnership with Vestas to introduce low-carbon emission steel, significantly reducing carbon emissions from wind turbine tower production[37] Risk Factors and Control ArcelorMittal faces diverse risks from global economic volatility, geopolitical conflicts, operational disruptions, acquisition challenges, financial exposures, and stringent environmental and trade regulations - Global economic and steel industry risks: Prolonged low steel and iron ore prices, volatile raw material and energy supply and prices, steel industry overcapacity, and unfair trade practices (e.g., dumping and government subsidies) could adversely affect the company's operating results[40][42][44][46] - Geopolitical conflict risks: The Russian invasion of Ukraine significantly impacted the company's operations in Ukraine, leading to a $1 billion impairment charge in 2022, with AMKR's mining and steel facilities operating at 45% and 30% capacity, respectively[47] - Operational risks: Labor disputes, equipment failures, natural disasters, accidents (e.g., the October 2023 Kostenko coal mine explosion in Kazakhstan resulting in 46 fatalities), epidemics, and extreme weather events could disrupt operations and affect financial performance[50][52] - Decarbonization target risks: The company's 2030 carbon emissions intensity reduction target is estimated to require approximately $10 billion in total capital costs and relies on government and societal support; a lack of support could hinder target achievement and impact competitiveness[48][50] - Cybersecurity risks: The company's operations rely on the secure and reliable performance of information technology systems, facing risks of data breaches, theft, unauthorized access, or successful cyberattacks; in 2023, malicious activity was detected in Spain, Brazil, Germany, and Venezuela[53][78] - Acquisition and investment risks: Failure to effectively manage external growth, difficulties in integrating acquired companies, joint ventures (e.g., ADI placed under special administration by the Italian government, leading to a $1.4 billion impairment in 2023), and significant capital projects (e.g., AMNS India's $7.4 billion expansion plan) could adversely affect future performance[53][55][56][59] - Financial risks: As of December 31, 2023, the company's total debt was $10.7 billion, with cash and cash equivalents of $7.8 billion; debt may impact operating results and financial position, and credit rating downgrades could increase borrowing costs; the utilization of deferred tax assets ($9.5 billion) depends on future profitability; exchange rate fluctuations and foreign exchange controls (e.g., Argentina, Brazil, China, India, South Africa, Ukraine, and Venezuela) may also affect performance[60][62][63][214][215][216][217][218] - Legal and regulatory risks: The company is subject to extensive, complex, and evolving environmental, health, and safety laws and regulations (e.g., EU IED, CSRD, CBAM), as well as investigations and litigation related to antitrust and compliance matters, which could lead to increased costs, fines, and reputational damage[63][64][65][66][67][68] - Material weakness in internal control: As of December 31, 2023, the company identified a material weakness in internal control at a Canadian subsidiary, related to IT general controls over user access and program change management, which could lead to material inaccuracies in the consolidated financial statements[69] Business Overview ArcelorMittal's strategy, centered on safety and sustainability, leverages global scale, technology, and financial strength to lead the steel industry, investing heavily in R&D, decarbonization, and responsible operations Business Strategy ArcelorMittal's strategy, guided by safety and sustainability, aims for steel value chain leadership through global scale, technical excellence, diversified operations, and financial strength, while pursuing decarbonization - Company's strategic core values: safety, sustainability, quality, and leadership[81] - Four unique strategic advantages: global scale and reach, superior technical capabilities, diversified steel and related businesses (especially mining), and financial strength[81] - Steel business: Expanding leadership in high-value markets and segments like automotive, energy, and infrastructure through technical capabilities and global scale, while actively addressing decarbonization challenges[83] - Mining business: Creating value from world-class mining operations through selective expansion, cost control, and supplying high-value products, while supporting the steel business's decarbonization efforts with raw materials[83] - All operations: Achieving industry-leading competitiveness through operational excellence, health and safety, asset optimization, continuous improvement, and innovation[83] - Five strategic enablers: clear license to operate, strong balance sheet, decentralized organization, active portfolio management, and best-in-class talent[83] Research and Development ArcelorMittal's R&D, with $299 million spent in 2023, drives sustainable success through continuous product and process innovation, focusing on automotive, non-automotive, decarbonization, and digital transformation R&D Expenses (million USD) | Year | R&D Expenses (million USD) | | :--- | :------------------------- | | 2023 | 299 | | 2022 | 286 | | 2021 | 270 | - In 2023, the company conducted 63 Life Cycle Assessment (LCA) studies to analyze the environmental impact of products and processes[84] - Automotive sector: Continuous development of S-in Motion® solutions (including BEV battery protection and lightweighting) and launch of the Multi Part Integration™ (MPI) project, aiming to simplify automotive manufacturing processes, reduce robot count, shop floor area, and labor hours per vehicle by 30%[85] - Non-automotive sector: Developing innovative products for energy transition (e.g., corrosion-resistant steels Magnelis®, Hyper® for wind towers, solar supports, Hymatch® steels for the hydrogen economy), packaging (chrome-free passivated tinplate, high-strength thin gauge steels), and construction (Amstrong® ultra-high strength steels, EcoSheetPile™ Plus low-carbon steels)[87][88] - Process innovation: Committed to achieving cost reduction, sustainability benefits (including carbon reduction, air/water quality improvement), and new product development through breakthrough process innovations; for example, utilizing slag as construction material and fertilizer, and recycling dust and sludge[88] - Air pollution control: In 2023, the company used advanced Artificial Intelligence (AI) tools at its Tubarão plant to analyze sensor data for better understanding emission sources and mitigation factors, and tested laser and AI-driven video monitoring technologies at four plants[90] - Decarbonization technology R&D: Continuously developing the H2 DRI-EAF steel production route, analyzing blast furnace decarbonization technology routes, and strengthening research in carbon capture and CO2 conversion[90] - Digital transformation: Committed to becoming a data-driven company, receiving multiple external recognitions in AI, and developing solutions such as ArcelorMittal Primary Portal, advanced scrap management models, and GPQS solutions[94][95] - Additive manufacturing: The company is constructing an industrial-scale inert gas atomizer in Avilés, Spain, with an annual capacity of 1,000 tonnes for additive manufacturing steel powder, and has established the ArcelorMittal Powders business unit[95] Sustainable Development ArcelorMittal prioritizes safety and climate change, targeting 25% global carbon intensity reduction by 2030 and net-zero by 2050 through decarbonization investments, while addressing safety incidents and enhancing environmental and social governance - Sustainable development governance: Overseen by Board committees (Audit & Risk, Appointments, Remuneration & Corporate Governance, Sustainable Development) and management committees (Management, Corporate Finance & Tax, Investment Allocation, Global Health & Safety, Climate Change, Sustainable Development, Diversity & Inclusion)[95][97][98][99][100] - Safety performance: In 2023, there were 61 fatal accidents (of which 57 occurred in the CIS region), prompting the company to commission an independent audit of global safety practices by DSS+, expected to be completed by September 2024; the company has linked executive Short-Term Incentive Plan (STIP) to the frequency of proactively identified Potential Serious Injury and Fatality (PSIFs) events, with a 122% year-on-year increase to 12,820 PSIFs detected in 2023[104][108][111] 2023 Safety Performance | Metric | LTIFR 2022 | LTIFR 2023 | Fatal Accidents 2022 | Fatal Accidents 2023 | PSIFs 2022 | PSIFs 2023 | | :------------------- | :--------- | :--------- | :------------------- | :------------------- | :--------- | :--------- | | Mining | 0.84 | 0.10 | 2.00 | 0.00 | 12.06 | 13.17 | | NAFTA | 0.25 | 0.22 | 0.00 | 1.00 | 13.86 | 15.76 | | Brazil | 0.10 | 0.26 | 1.00 | 0.00 | 18.19 | 22.02 | | Europe | 1.11 | 1.30 | 2.00 | 2.00 | 14.02 | 15.28 | | CIS & South Africa | 0.74 | 1.43 | 17.00 | 58.00 | 11.44 | 18.78 | | Total | 0.70 | 0.92 | 22.00 | 61.00 | 12.76 | 16.64 | - Climate change and decarbonization: The company targets a 25% reduction in global carbon emissions intensity (35% in Europe) by 2030, and net-zero emissions by 2050; total capital costs are estimated at approximately $10 billion, with an expectation of 50% public funding support; decarbonization pathways include transforming steelmaking assets (DRI-EAF, CCU/CCS), increasing scrap utilization, investing in clean electricity, and offsetting residual emissions[111] - Decarbonization project progress: DRI/EAF projects in Canada, Spain, France, Belgium, and Germany are in the FEED stage and have received funding approval from the European Commission; the company launched the Torero bio-coke plant and Steelanol CCU plant in Ghent, and initiated a carbon capture pilot project in Dunkirk[111][114][116][117][118][119][120][121] - Clean electricity investment: Investing $600 million in a 975 MW renewable energy project in India, developing a 554 MW wind power project in Brazil with Casa dos Ventos, and leveraging the XCarb® brand to promote low-carbon solutions[122][124] - Carbon performance: In 2022, the company's adjusted global carbon emissions intensity KPI was 2.00 tonnes CO2e/tonne crude steel, a 4.3% decrease since 2018; Europe's adjusted KPI was 1.67 tonnes CO2e/tonne crude steel, an 1.8% improvement since 2018[144][145] - Environment and biodiversity: In 2023, 26 environmental projects ($291 million capital expenditure) and 46 energy projects ($1.716 billion capital expenditure, including $729 million for decarbonization) were approved; the company updated its environmental policy, strengthened environmental data management systems, and published 24 Environmental Product Declarations (EPDs)[148][150][153][155][192] - Responsible value chain: Strengthening human rights policies, with 33 steel production sites certified by ResponsibleSteel™ by the end of 2023; iron ore operations in Canada, Liberia, Brazil, and Mexico are pursuing IRMA certification; the company actively addresses supply chain due diligence legislation (e.g., German Supply Chain Due Diligence Act and EU CS3D)[160][161][162][163] - Community and just transition: Investing in local communities through improved stakeholder engagement, needs assessments, and grievance management; the company developed a "Just Transition" management framework to ensure an effective and inclusive transition to a low-carbon economy[164][165][169][170][171][172][173] Products ArcelorMittal offers a diverse range of steel products, including flat and long products, alongside iron ore, utilizing various steelmaking processes and a global raw material sourcing strategy for efficiency - The company boasts a highly diversified product portfolio, producing a wide range of finished and semi-finished steel products, including complex and high-tech items[174] - Key steel products include: semi-finished flat products (slabs), finished flat products (heavy plates, hot/cold rolled coils, hot-dip galvanized/electro-galvanized coils, tinplate, color-coated coils), semi-finished long products (blooms, billets), finished long products (bars, wire rods, sections, rails, sheet piles, wire rod products), and seamless and welded tubes[174] - Primary mineral products include iron ore lump, fines, concentrate, pellets, and sinter feed; coking coal operations were sold with the Kazakhstan business on December 7, 2023[174][179] - Steelmaking processes include: integrated mills (blast furnace-basic oxygen furnace route), mini-mills (electric arc furnace route, primarily relying on scrap), and integrated mini-mills (mini-mills producing their own high-quality metallic raw materials, such as direct reduced iron)[179] - Raw material supply strategy: Acquiring and expanding raw material production (especially iron ore), leveraging global procurement advantages for cost control and value optimization, and utilizing local and low-cost advantages[179] - Iron ore self-sufficiency: Most iron ore demand is met by own mines in Ukraine, Bosnia, Canada, Mexico, Liberia, and Brazil[180] - Other raw materials and energy: Scrap (primarily procured through spot markets and short-term contracts), alloys, base metals (zinc, tin, aluminum, nickel), electricity (via tariff systems, direct market purchases, or bilateral contracts), natural gas (spot markets or short-term contracts), and industrial gases (long-term contracts)[181] - Shipping: ArcelorMittal Shipping arranged transportation for approximately 49.19 million tonnes of raw materials and 7.31 million tonnes of finished products in 2023[181] Sales and Marketing In 2023, ArcelorMittal sold 55.6 million tonnes of steel products, managing domestic sales through decentralized units and global sectors with unified functions, supported by an international export network and regional marketing - In 2023, ArcelorMittal sold 55.6 million tonnes of steel products[184] - Domestic market sales: Primarily managed through decentralized business or production units[184] - Global industry sales: For global sectors like automotive, the company has established customized sales and service functions, coordinating contracts, prices, and payment terms at the group level[185] - Export sales: Conducted through an international network of sales agents to ensure cost-effectiveness and a coordinated market presence[184] - Marketing strategy: Focuses on regional marketing capabilities, providing forecasts and pricing guidance to sales, and sharing global marketing intelligence to identify new opportunities[185] Intellectual Property ArcelorMittal maintains a vast patent portfolio of over 12,870 patents across 831 families, alongside trademarks and proprietary know-how, with robust systems to protect its confidential information - The company owns and maintains a patent portfolio covering steel processes, products, and their uses and applications[186] - The patent portfolio includes over 12,870 patents and patent applications, covering 831 patent families, with 103 new inventions added in 2023[186] - The company continuously develops technical know-how and other non-patented proprietary information, including decarbonization solutions for steel production and the use of high-quality steel products[188] - The company has licensed third-party technologies to provide comprehensive steel solutions to customers[188] - The company has policies and systems in place to monitor and protect the confidentiality of its proprietary information and has not identified any intellectual property infringement lawsuits that could materially harm its business[186][188] Government Regulations ArcelorMittal navigates complex and evolving environmental, trade, and currency regulations, including stringent EU Green Deal policies and CBAM, incurring significant compliance costs and facing trade policy impacts and foreign exchange controls - Environmental laws and regulations: Company operations are subject to extensive laws and regulations concerning air emissions, water protection, hazardous material handling, waste management, and pollution remediation; increasingly stringent regulations like the EU Green Deal and Industrial Emissions Directive (IED) require significant resource investment for compliance[189] - Supply chain due diligence: The German Supply Chain Due Diligence Act 2022 came into effect in January 2023, and a provisional political agreement on the EU Corporate Sustainability Due Diligence Directive (CS3D) was announced in December 2023, requiring companies to identify, prevent, mitigate, and report human rights and environmental impacts in their value chains[190][191] - Environmental and energy capital expenditures: In 2023, the company approved 26 environmental projects with capital expenditures of $291 million; 46 energy projects with capital expenditures of $1.716 billion (including 23 decarbonization projects with capital expenditures of $729 million); actual capital expenditure for decarbonization initiatives in 2023 was $200 million, projected to increase to $300-400 million in 2024 (net of government support)[192][278][280] - Air emissions: Regulations in Canada, Ukraine, and Fos-sur-Mer, France, among others, require significant company investments to comply with emission limits and implement advanced monitoring and reduction technologies[193][194][158] - Water resource management: Water laws and regulations in Ukraine, South Africa, Mexico, and Canada are continuously revised, requiring the company to enhance wastewater treatment, water conservation, and monitoring; water usage fees in Quebec significantly increased from January 1, 2024[196][197][198] - Climate change regulations: Countries globally (e.g., EU, South Africa, Canada, Brazil, Argentina, Mexico, Ukraine) are implementing or revising carbon pricing mechanisms, Emissions Trading Systems (ETS), Renewable Energy Directives (RED), and Carbon Border Adjustment Mechanisms (CBAM) to achieve climate targets; free allowances under the EU ETS will be phased out, and CBAM's transitional period began in October 2023, with payments starting in 2026[198][200][201][202][203][204] - Foreign trade: US Section 232 tariffs, EU safeguard measures, anti-dumping and safeguard measures on steel imports in countries like Turkey and Canada, and Eurasian Economic Union safeguard measures continue to affect the company's steel import and export operations[206][207][208][210][211][212][214] - Key currency regulations and foreign exchange controls: Foreign exchange controls and monetary policies in countries such as Argentina, Brazil, China, India, South Africa, Ukraine, and Venezuela may affect fund repatriation and foreign exchange transactions[214][215][216][217][218] - Iran Threat Reduction and Syria Human Rights Act (ITRA): In 2023, neither ArcelorMittal nor any of its affiliates engaged in Iran-related activities, transactions, or dealings triggering Section 13(r) disclosure[219] Organizational Structure ArcelorMittal, a holding company, operates through indirectly held subsidiaries across five reporting segments, with a revised structure from 2024 adding "India and Joint Ventures" and "Sustainable Solutions" segments - ArcelorMittal is a holding company, with all significant operating subsidiaries indirectly held through intermediate holding companies[221] - As of 2023, the company's operations were divided into five reporting segments: NAFTA, Brazil, Europe, ACIS, and Mining[223] 2023 Crude Steel Production by Process and Segment (million tonnes) | Segment | Basic Oxygen Furnace | Electric Arc Furnace | Total | | :----------------- | :------------------- | :------------------- | :---- | | NAFTA | 3.1 | 5.6 | 8.7 | | Brazil | 10.3 | 3.7 | 14.0 | | Europe | 23.2 | 5.6 | 28.8 | | CIS & South Africa | 6.5 | — | 6.5 | | Total | 43.1 | 14.9 | 58.1 | 2023 Number of Blast Furnace and Electric Arc Furnace Facilities by Segment | Segment | Blast Furnaces | Electric Arc Furnaces | | :----------------- | :------------- | :-------------------- | | NAFTA | 3 | 8 | | Brazil | 7 | 8 | | Europe | 15 | 13 | | CIS & South Africa | 10 | 1 | | Total | 35 | 30 | - Effective January 1, 2024, the company will adjust its organizational structure: adding "India and Joint Ventures" operating segment (including AMNS India, VAMA, and Calvert joint ventures), adding "Sustainable Solutions" operating segment, renaming the NAFTA segment to "North America," and reclassifying the remaining parts of the former ACIS segment into "Other"[223][224] Properties and Capital Expenditures ArcelorMittal owns extensive global steel and iron ore assets, with $4.6 billion in capital expenditures in 2023, projected to be $4.5-5.0 billion in 2024, focusing on decarbonization, capacity expansion, and modernization, supported by 3.937 billion tonnes of iron ore reserves Property, Plant and Equipment ArcelorMittal operates extensive global steel and iron ore facilities, including 50 coke ovens and 35 blast furnaces, with significant investments in low-carbon steel production, capacity expansion, and decarbonization projects across continents - ArcelorMittal owns steel production facilities and iron ore mining operations globally, primarily located in North America, South America, Europe, Asia, and Africa[225] 2023 Key Steel Production Facility Capacity and Production | Facility Name | Capacity (million tonnes/year) | 2023 Production (million tonnes) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Coke Ovens | 26.5 | 17.0 | | Sinter Plants | 79.6 | 42.4 | | Blast Furnaces | 66.1 | 41.3 | | Basic Oxygen Furnaces | 70.0 | 43.8 | | DRI/HBI Plants | 10.6 | 7.8 | | Electric Arc Furnaces | 24.9 | 15.4 | | Continuous Casters—Slab | 62.6 | 40.4 | | Hot Rolling Mills | 53.8 | 32.8 | | Pickling Lines | 24.6 | 10.6 | | Cold Rolling Mills | 28.3 | 16.8 | | Annealing Lines (Continuous/Batch) | 12.4 | 5.3 | | Temper Mills | 11.2 | 4.1 | | Plate Mills | 1.7 | 0.9 | | Continuous Casters—Bloom/Billet | 31.5 | 17.4 | | Blooming Mills (Primary/Slab Mills) | 6.0 | 0.3 | | Billet Mills | 2.6 | 1.0 | | Section Mills | 12.2 | 5.1 | | Bar Mills | 7.8 | 5.5 | | Wire Rod Mills | 10.5 | 5.8 | | Hot Dip Galvanizing Lines | 15.6 | 12.1 | | Electro Galvanizing Lines | 1.6 | 0.8 | | Tinplate Mills | 2.4 | 0.8 | | Color Coating Lines | 2.6 | 1.4 | | Seamless Tubes | 0.4 | 0.1 | | Welded Tubes | 4.1 | 1.0 | - NAFTA: ArcelorMittal Dofasco (Canada) is investing CAD 1.8 billion to build low-carbon steel production facilities, including a 2.4 million tonne DRI facility and one Electric Arc Furnace; ArcelorMittal Texas HBI (USA) holds an 80% stake in a plant with an annual capacity of 2 million tonnes of HBI; the new hot strip mill project at ArcelorMittal Mexico's Lázaro Cárdenas plant has reached approximately 60% capacity utilization[234][235][236] - Brazil: ArcelorMittal Brasil's Monlevade upstream expansion project restarted in late 2021; the company completed the acquisition of Companhia Siderúrgica do Pecém (now ArcelorMittal Pecém) in March 2023, with the plant producing 2.5 million tonnes in 2023; the Serra Azul mine is investing $350 million, targeting 4.5 million tonnes of DRI-grade pellets by H2 2024[244][247][276] - Europe: ArcelorMittal France plans to build a 2.5 million tonne DRI unit and two Electric Arc Furnaces in Dunkirk, and a new electrical steel production unit in Mardyck; ArcelorMittal Belval & Differdange (Luxembourg) is investing €67 million to build a new Electric Arc Furnace, increasing crude steel capacity by nearly 15% to 2.5 million tonnes per year[251][254][255][256] - Joint ventures: AMNS India (India) is undergoing an expansion project, targeting an increase in rolled product output at the Hazira plant to 15 million tonnes by H1 2026; AMNS Calvert (USA) plans to invest $1 billion in an on-site steelmaking facility (a 1.5 million tonne Electric Arc Furnace), expected to commence operations in H2 2024; VAMA (China)'s capacity expansion project is expected to increase capacity by 40% to 2 million tonnes by H2 2024[269][271][272] Capital Expenditures ArcelorMittal's capital expenditures reached $4.6 billion in 2023, projected to be $4.5-5.0 billion in 2024, with $1.4-1.5 billion allocated for strategic growth, primarily funded internally for decarbonization and capacity expansion Capital Expenditures (billion USD) | Year | Amount (billion USD) | | :--- | :------------------- | | 2023 | 4.6 | | 2022 | 3.5 | | 2021 | 3.0 | - Capital expenditures for 2024 are projected to be between $4.5 billion and $5.0 billion, with $1.4 billion to $1.5 billion allocated for strategic growth capital expenditures[274] - The company expects to primarily fund these capital expenditures through internal sources[274] - In 2023, the company approved 26 multi-year projects with environmental benefits, involving capital expenditures of $291 million; 46 multi-year projects with energy benefits, involving capital expenditures of $1.716 billion (including 23 projects specifically for decarbonization, involving capital expenditures of $729 million)[278] - Capital expenditures related to decarbonization initiatives in 2023 were $200 million, projected to increase to $300 million to $400 million in 2024 (net of government support)[278][280] - Key ongoing projects include: Brazil's Vega Do Sul expansion, Monlevade upstream expansion, Serra Azul mine pellet plant, Barra Mansa section mill; Europe's Mardyck new electrical steel production facility, Gijón Electric Arc Furnace project; North America's Las Truchas mine modernization and capacity upgrade; Liberia Phase 2 high-end product expansion project; India's Andhra Pradesh renewable energy project; and expansion projects for joint ventures AMNS India and AMNS Calvert[276] Mineral Reserves and Resources ArcelorMittal's vital iron ore mining operations span multiple continents, with 3.937 billion tonnes of iron ore reserves as of 2023, supporting 98.4 million tonnes of raw iron ore production, estimated per S-K 1300 guidelines - ArcelorMittal's iron ore mining operations are crucial to its business, with facilities in Canada, Mexico, South America, Europe, Africa, Ukraine, and India (through AMNS India)[279][282] Run-of-Mine (ROM) Iron Ore and Coal Total Production (million tonnes) | Commodity | 2023 Production (million tonnes) | 2022 Production (million tonnes) | 2021 Production (million tonnes) | | :-------- | :------------------------------- | :------------------------------- | :------------------------------- | | Iron Ore | 98.4 | 102.5 | 115.1 | | Coal | 5.8 | 7.0 | 8.3 | Iron Ore Mineral Reserves as of December 31, 2023 (ArcelorMittal Ownership) | Country | Proved Reserves (million tonnes) | Probable Reserves (million tonnes) | Total Reserves (million tonnes) | | :--------- | :------------------------------- | :--------------------------------- | :------------------------------ | | Canada | 1,881 | 104 | 1,985 | | Mexico | 46 | 176 | 222 | | Brazil | 176 | 251 | 427 | | Bosnia | 4 | 2 | 6 | | Ukraine | 70 | 444 | 514 | | Liberia | 39 | 660 | 699 | | India | 6 | 78 | 84 | | Total | 2,222 | 1,715 | 3,937 | Iron Ore Mineral Resources (Measured+Indicated, ArcelorMittal Ownership) as of December 31, 2023 | Country | Measured Resources (million tonnes) | Indicated Resources (million tonnes) | Total Measured+Indicated Resources (million tonnes) | Inferred Resources (million tonnes) | | :--------- | :---------------------------------- | :----------------------------------- | :-------------------------------------------------- | :---------------------------------- | | Canada | 1,524 | 1,569 | 3,093 | 1,617 | | Mexico | 17 | 86 | 103 | 20 | | Brazil | 89 | 187 | 276 | 105 | | Bosnia | — | 3 | 3 | 2 | | Ukraine | 80 | 405 | 485 | 42 | | South Africa | — | 38 | 38 | 43 | | Liberia | — | 1,116 | 1,116 | 767 | | India | 1 | 57 | 58 | 56 | - Mineral reserves and resources estimates are prepared by qualified persons in accordance with SEC S-K 1300 guidelines, considering economic viability and long-term iron ore reference prices ($70 per tonne for 62% Fe fines)[330][331][333][334] - Key mine service lives: AMMC (28 years), Baffinland (24 years), Las Truchas (15 years), Peña Colorada (16 years), Serra Azul (34 years), Andrade (31 years), Liberia (30 years)[337][338] - The company's mining and exploration assets employ rigorous quality control and quality assurance processes, with established ore body knowledge and management frameworks to ensure the validity and integrity of mineral resource and reserve estimation data[341]