Rusty reasoning: groups challenge European Investment Bank to justify the latest ArcelorMittal public millions

Arcelor Mittal operations in Zenica, Bosnia. (Adnan Dzonlic)

LUXEMBOURG -- On 21 October 2009 the European Investment Bank’s board of directors approved a loan to ArcelorMittal worth EUR 250 million for a research and development programme said to be all about bringing environmental added value to the company's European operations. Couldn't a company the size of ArcelorMittal be expected to either fund the project out of its own resources or be able to access commercial loans, leaving advantageous European Investment Bank funding to companies more in need? Frustrated by their dealings with the EIB on these matters, Bankwatch, ClientEarth and Global Action on ArcelorMittal have this week lodged a formal complaint with the Secretary General of the European Investment Bank that questions the rigour and ultimate validity of the bank's pre-loan assessment. Read it here and consider the magnetic pull ArcelorMittal seems to have towards public money.

-- CEE Bank Watch Network

EU court dismisses Arcelor challenge against ETS

BRUSSELS, Belgium -- The EU's General Court yesterday (2 March) ruled against steel company Arcelor's attempt to challenge the rules governing the EU's emissions trading scheme (EU ETS) and associated claim for damages. The Court ruled Arcelor's action as inadmissible on the grounds that only companies individually or directly concerned by EU acts can bring a legal challenge to them. It argued that Arcelor is "neither individually nor directly concerned by the directive," which applies generally to all operators that it covers, including those in pig iron or steel production.

-- EurActiv.com

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Arcelor Mittal shortlisted for anti-green award

CAPE TOWN, South Africa -- "Steel giant Arcelor Mittal's Vanderbijlpark plant has been shortlisted for an infamous international environmental award to be announced alongside the World Economic Forum meeting in Davos this week... The Indian steel giant Arcelor Mittal was nominated for a number of reasons, including that it was not only the largest, but also the filthiest steelworks in South Africa,"

-- Eleanor Momberg, Sunday Independent.

ArcelorMittal’s polluting South African plant shortlisted for Public Eye Global Award in Davos at World Economic Forum

ZAGREB, Croatia -- "The Luxembourg steel giant ArcelorMittal, the world’s biggest steel company has been shortlisted along with five other candidates for the Public Eye Global Award to be held in Davos, Switzerland, on the 27th January – the opening day of the World Economic Forum. The company has been selected from over 40 nominees due to its heavily polluting operation in Vanderbijlpark, which is their biggest and most profitable operation in South Africa. The nomination recognises the company’s toxic waste dumping; failure to clean up contamination in neighbourhoods around its steelworks; lobbying against stricter air pollution controls and withholding information from the public that will allow society to better understand the impact of the plant on their health and well-being. The general public can cast votes at www.publiceye.ch until 26th January,"

-- press release, Global Action on ArcelorMittal.

European Investment Bank: No loans for ArcelorMittal

ZAGREB, Croatia -- "We have recently discovered that the EIB is considering a loan for steel company ArcelorMittal and that this will be discussed by the Board of Directors this Wednesday, 21st October. ArcelorMittal has an extremely poor environmental, social and transparency record in many countries, including during projects financed by international financial institutions. As the world’s largest steel company we also believe that ArcelorMittal could access financing from other sources, and that there is no added value in providing a low-interest public loan to the company. We therefore urge the EIB not to approve any loan to ArcelorMittal in the foreseeable future,"

-- Pippa Gallop, CEE Bankwatch Network, Global Action on ArcelorMittal.

• Letter to the European Investment Bank from Global Action
• Letter to the European Commission from Global Action
• Response from the European Investment Bank

Mittal dismisses pollution claims in South Africa

VANDERBIJLPARK, South Africa -- "Strike Matsepe used his life savings to buy a small plot of land near the country's biggest steel mill, hoping it would become a thriving farm in his old age. Now, weathered and sick, the 80 year old has had to abandon his dream -- the land and ground water are so polluted his cattle have died and crops failed. On Friday, ArcelorMittal SA, the world's largest steel marker, dismissed allegations of severe environmental damage and unethical business practices at the mill. In 2002, the company took over the 67-year-old plant that residents and environmental groups say has polluted their live,"

-- Celean Jacobson, Associated Press.

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Mittal set to quit $20bn Indian steel project

LONDON, UK -- "Lakshmi Mittal is close to pulling out of a $20bn plan to build two large steel plants in India – the centrepiece of efforts by one of the world’s most prominent industrialists to expand in the country of his birth. Delays in persuading farmers and others to sell the land he needs for the developments in the states of Jharkand and Orissa are 'unacceptable,' the chairman and main owner of the ArcelorMittal steel company told the FT. 'If we cannot make progress in these two sites we will have to abandon the idea of starting the projects there and look for other places in India for our expansion,' Mr Mittal said,"

-- Peter Marsh, Financial Times.