Overview

2016 was a year of important progress for ArcelorMittal.

Action 2020

Action 2020 is ArcelorMittal's commitment to structurally improving profitability and cash flow generation.

Governance

Good corporate governance is about compliance, continuous stakeholder dialogue and being a good corporate citizen.

Fact book

Details of our steel and mining operations, financials, production facilities and shareholder information.

Iron ore production and shipment by geography

Production by mine annually (2012 – 2016) and quarterly (2016)

(millions of metric tonnes)1

Mine Type Product 2012 2013 2014 2015 2016 1Q 16 2Q 16 3Q 16 4Q 16
Kazakhstan     4.0 3.7 3.6 2.9 2.5 0.7 0.5 0.7 0.6
Lisakovski Open Pit Concentrate 2.3 2.1 1.6 0.9 0.7 0.3 0.1 0.2 0.2
Kentube Open Pit Concentrate 0.7 0.7 0.7 0.7 0.5 0.2 0.1 0.1 0.1
Atasu Underground Lump & fines 0.6 0.6 0.9 0.9 0.8 0.2 0.2 0.2 0.2
Atansore Open Pit Lump & Fines 0.4 0.4 0.4 0.4 0.4 0.1 0.1 0.1 0.1
Ukraine     10.7 11.3 10.9 11.0 9.8 2.8 2.4 2.1 2.6
Kryviy Rih Open Pit Concentrate 9.8 10.2 9.9 10.1 9.0 2.6 2.1 1.9 2.4
Kryviy Rih Underground Lump & sinter feed 0.9 1.0 1.0 0.9 0.9 0.2 0.3 0.2 0.2
Algeria     1.4 0.7 0.5 - - - - - -
Ouenza Open Pit Fines 1.4 0.7 0.5 - - - - - -
Bosnia     2.1 2.1 2.1 2.1 1.8 0.3 0.5 0.5 0.4
Omarska Open Pit Concentrate & lump 2.1 2.1 2.1 2.1 1.8 0.3 0.5 0.5 0.4
Mexico2     7.3 6.8 6.5 5.3 2.9 0.6 0.7 0.8 0.8
Peña Colorada Open Pit Concentrate & Pellets 2.3 2.0 1.7 1.7 1.5 0.4 0.4 0.3 0.4
Las Truchas Open Pit Concentrate, lump & fines 2.9 2.6 2.5 1.8 1.4 0.2 0.3 0.4 0.4
Volcan Open Pit Concentrate 2.2 2.2 2.3 1.7 - - -    
Canada2     15.0 18.0 23.3 25.9 25.0 6.0 6.1 6.4 6.5
QCM (Mount Wright) Open Pit Concentrate & Pellets 15.0 18.0 23.3 25.9 25.0 6.0 6.1 6.4 6.5
USA2     7.9 7.7 7.5 7.8 8.0 2.0 1.8 2.1 2.0
Hibbing Open Pit Pellets 5.0 4.8 4.8 5.1 5.2 1.3 1.3 1.3 1.3
Minorca Open Pit Pellets 2.9 2.9 2.7 2.7 2.8 0.7 0.6 0.8 0.7
Brazil     4.1 3.9 4.5 3.5 3.1 0.8 0.8 0.8 0.8
Serra Azul Open Pit Lump & fines 1.7 1.4 1.8 2.0 1.6 0.4 0.4 0.4 0.4
Andrade Open Pit Fines 2.3 2.5 2.6 1.5 1.5 0.4 0.4 0.4 0.4
Liberia     3.3 4.1 4.9 4.3 2.1 0.8 0.6 0.3 0.3
                       
Own production     55.9 58.4 63.9 62.8 55.2 14.1 13.5 13.7 13.9
                       
South Africa     4.7 4.7 4.9 4.3 0.8 0.5 0.3 - -
Sishen Open Pit Lump & fines 3.5 4.0 3.9 3.0 -        
Thabazambi4 Open Pit Lump & fines 1.2 0.7 1.0 1.3 0.8 0.5 0.3    
USA     7.6 7.0 8.2 6.6 6.1 0.5 1.5 1.8 2.4
Cleveland Cliffs3 Open Pit Pellets 7.6 7.0 8.2 6.6 6.1 0.5 1.5 1.8 2.4
Strategic contracts     12.3 11.7 13.1 10.9 6.9 1.0 1.8 1.8 2.4
                       
Total     68.1 70.1 77.0 73.7 62.1 15.1 15.3 15.4 16.3

Own iron ore production (2012-2016) (Millions of metric tonnes)

Color #FF3700
X-axis Iron ore
2012 55.9
2013 58.4
2014 63.9
2015 62.8
2016 55.2
(Millions of metric tonnes)
2012 2013 2014 2015 2016
55.9 58.4 63.9 62.8 55.2

Total iron ore production by country 2016 (Millions of metric tonnes)

Kazakhstan 5% #80AD9D
Ukraine 18% #AA9E6E
Bosnia 3% #CDB997
Mexico 5% #7D9EB4
Canada 45% #5C7F92
USA 10% #6E93AC
Brazil 6% #8B819E
Liberia 8% #70A489
Total
55.2
(Millions of metric tonnes) 2016 %
Kazakhstan 2.5 5
Ukraine 9.8 18
Bosnia 1.8 3
Mexico 2.9 5
Canada 25.0 45
USA 8.0 10
Brazil 3.1 6
Liberia 2.1 8

1 Total of all finished production of fines, concentrate, pellets and lumps.

2 Includes own mines and share of production from Hibbing (United States, 62.30%) and Peña (Mexico, 50%).

3 The production for year ended 2015 includes purchases under strategic agreements with Sishen Iron Ore Company (Proprietary) Limited’s (“SIOC”) Kumba and Thabazimbi mines (South Africa). On November 6, 2015, ArcelorMittal announced that an agreement had been reached with SIOC to amend the pricing mechanism terms of the current iron ore supply agreement related to Kumba from a cost-based price to an Export Parity Price (“EPP”) with effect from October 1, 2015. The EPP is calculated on the basis of the Platts 62% Fe CFR China Fines Index (the “Index price”) and, at certain price levels, ArcelorMittal receives a discounted price. As a result of this amendment, the contract related to Kumba is no longer considered as a strategic contract in 2016.

4 Consists of a long-term supply contract with Cliffs Natural Resources.

Iron ore production by region annually (2012-2016) and quarterly (2016)

(Million tonnes)1                      
Mine Type Product 2012 2013 2014 2015 2016 1Q 16 2Q 16 3Q 16 4Q 16
North America2 Open Pit Concentrate, lump, fines and Pellets 30.3 32.5 37.4 39.0 35.9 8.7 8.6 9.2 9.3
South America Open pit Lump and fines 4.1 3.9 4.5 3.5 3.1 0.8 0.8 0.8 0.8
Europe Open pit Concentrate and lump 2.1 2.1 2.1 2.1 1.8 0.3 0.5 0.5 0.4
Africa Open Pit/Underground Fines 4.7 4.8 5.5 4.3 2.1 0.8 0.6 0.3 0.3
Asia, CIS & Other Open Pit/Underground Concentrate, lump, fines and sinter feed 14.7 15.0 14.5 13.9 12.4 3.5 2.9 2.8 3.1
Own production     55.9 58.4 63.9 62.8 55.2 14.1 13.5 13.7 13.9
North America3 Open Pit Pellets 7.6 7.0 8.2 6.6 6.1 0.5 1.5 1.8 2.4
Africa4 Open Pit Lump and Fines 4.7 4.7 4.9 4.3 0.8 0.5 0.3 - -
Strategic contracts     12.3 11.7 13.1 10.9 6.9 1.0 1.8 1.8 2.4
Total     68.1 70.1 77.0 73.7 62.1 15.1 15.3 15.4 16.3

Own iron ore production by region 2016 (million tonnes)

North America 65% #5C7F92
South America 6% #8B819E
Europe 3% #AA9E6E
Africa 4% #C88F42
Asia, CIS & Other 22% #70A489
Total
55.2
(million tonnes) 2016 %
North America2 35.9 65
South America 3.1 6
Europe 1.8 3
Africa 2.1 4
Asia, CIS & Other 12.4 22

1 Total of all finished production of fines, concentrate, pellets and lumps.

2 Includes own mines and share of production from Hibbing (United States, 62.30%) and Peña (Mexico, 50%).

3 Consists of a long-term supply contract with Cliffs Natural Resources.

4 The production for year ended 2015 includes purchases under strategic agreements with Sishen Iron Ore Company (Proprietary) Limited’s (“SIOC”) Kumba and Thabazimbi mines (South Africa). On November 6, 2015, ArcelorMittal announced that an agreement had been reached with SIOC to amend the pricing mechanism terms of the current iron ore supply agreement related to Kumba from a cost-based price to an Export Parity Price (“EPP”) with effect from October 1, 2015. The EPP is calculated on the basis of the Platts 62% Fe CFR China Fines Index (the “Index price”) and, at certain price levels, ArcelorMittal receives a discounted price. As a result of this amendment, the contract related to Kumba is no longer considered as a strategic contract in 2016.

Iron ore shipments annually (2012 - 2016) and quarterly (2016)

Millions of metric tonnes 2012 2013 2014 2015 2016 1Q 16 2Q 16 3Q 16 4Q 16
External Sales - Third party 10.4 11.6 14.4 13.7 12.3 2.9 3.4 3.1 2.9
Internal sales - Market Priced 18.4 23.5 25.4 26.7 21.3 4.9 6.2 5.0 5.2
Total market priced shipments 28.8 35.1 39.8 40.3 33.6 7.8 9.6 8.1 8.1
Captive (Cost plus basis) 25.6 24.4 23.9 22.1 22.3 5.3 5.8 5.8 5.4
Total Shipments 54.4 59.6 63.7 62.4 55.9 13.1 15.4 13.9 13.5
Strategic contracts 12.3 11.7 13.1 11.4 6.9 1.0 1.8 1.8 2.4
Total shipments including strategic contracts 66.6 71.3 76.8 73.9 62.9 14.1 17.2 15.7 15.9

Iron ore shipments 2016

Market priced, captive and strategic contracts (Millions of metric tonnes)
Market Priced 53% #77797A
Captive (Cost plus basis) 35% #919597
Strategic contracts 11% #A1A3A4
Total
62.9
Millions of metric tonnes 2016 %
Market Priced 33.6 53
Captive (Cost plus basis) 22.3 35
Strategic contracts 6.9 11
External sales - third party and internal sales - market priced (Millions of metric tonnes)
External Sales
- Third party
37% #919597
Internal sales
- Market Priced
63% #77797A
Total
33.6
Millions of metric tonnes 2016 %
External Sales - Third party 12.3 37
Internal sales - Market Priced 21.3 63

There are three categories of sales:

1) “External sales”: mined product sold to third parties at market price;

2) “Market-priced tonnes”: internal sales of mined product to ArcelorMittal facilities and reported at prevailing market prices;

3) “Cost-plus tonnes” - internal sales of mined product to ArcelorMittal facilities on a cost-plus basis. The determinant of whether internal sales are reported at market price or cost-plus is whether the raw material could practically be sold to third parties (i.e. there is a potential market for the product and logistics exist to access that market).