Mine Fire in Kazakhstan Kills 46, Accelerates Nationalization Talks

Crossroads Asia | Economy | Central Asia

When a hearth broke out on the Kostenco coal mine in Kazakhstan’s Karaganda area on October 28, 252 individuals had been underground. Although 206 had been safely evacuated to the floor, 46 miners died within the mine. 

Kazakh President Kassym-Jomart Tokayev didn’t mince phrases, calling ArcelorMittal – the worldwide mining big and mum or dad firm of ArcelorMittal Temirtau, which operates the Kostenco mine – “the worst in our history in terms of cooperation between the government and [a private] enterprise.”

After expressing his condolences to the households of the miners killed, Tokayev declared October 29 a Day of National Mourning and “gave instructions to terminate investment cooperation with ArcelorMittal Temirtau.”

Although the incident prompted Tokayev’s strident remarks, the federal government and the corporate had been already in talks to separate. In a press launch, ArcelorMittal confirmed that “the two parties have been in discussions concerning the future of ArcelorMittal Temirtau and recently signed a preliminary agreement for a transaction that will transfer ownership to the Republic of Kazakhstan.” 

ArcelorMittal Temirtau is the most important producer in Kazakhstan’s metal and mining sector. Its metal plant in Temirtau – commissioned in 1960 and bought by ArcelorMittal in 1995 amid the post-Soviet privatization increase – has an annual capability of 4 million tons of crude metal. The firm additionally operates eight coal mines in Karaganda area and 4 iron ore mines in Central and Northern Kazakhstan.

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Four miners died in a hearth at a unique ArcelorMittal Temirtau mine in August. At the time, Kazakh Prime Minister Alikhan Smaiylov laid blame squarely on the toes of the mine’s homeowners, saying, “This is primarily the fault of the owners of the company. Their complete ignorance of the company’s activities has been leading to tragic events for several years.”

During an August 19 assembly concerning the fireplace on the Kazakhstanskaya mine, Smaiylov claimed that “every second death in the ArcelorMittal international group… occurs precisely in the Kazakhstan division.” He stated that greater than 100 individuals had died at ArcelorMittal Temirtau services within the final 15 years alone. 

Nationalization will not be the salve Kazakhstan seeks. Aging mining infrastructure will probably be a troublesome, and costly, hurdle to surmount. And violations of security requirements on the mines, or different services, is not going to essentially vanish with a change of possession. That stated, nevertheless, nationalization will tie duty for future accidents to Astana moderately than a distant Luxembourg-based multinational conglomerate owned by an Indian billionaire. 

As with the wildfires earlier this 12 months, Tokayev moved swiftly to put himself on the website of the catastrophe and be seen taking motion, together with talking on to households affected.

At least 15 individuals, principally emergency employees and firefighters, died battling blazes within the northeastern Abai area in June 2023. The spouse of one of many males who died complained to RFE/RL’s Kazakh Service that there have been by no means any spare elements for the forestry division’s automobiles; her husband took his personal automobile to combat the hearth. “It seems like all the vehicles are constantly broken down, and they have nothing to fix them with,” she stated.

Such feedback, and Tokayev’s rapid dismissal of the Emergency Situations minister on the time, prompted dialogue of corruption, however didn’t clearly yield any deep introspection concerning the nexus between authorities, corruption, and security. 

Nationalization could transfer ArcelorMittal Temirtau’s mine and services into authorities management, however it is not going to instantly enhance them. That will take critical effort, and cash, on Kazakhstan’s half.