Atmospheric emissions

Continuous improvement of processes through reduction of energy consumption,

increased steel recycling and increased material efficiency has resulted in significant
reduction of the carbon dioxide (CO2 ) impact of final steel products. Today, technical
achievements in the blast furnace route in Europe are very close to the theoretical
minimum CO2 in many sites and further reductions will come from developing recycling
or from technology changes.

Worldwide, many sites are far from this level of performance and the path followed in
Europe offers the prospect of large CO2 emission reductions.

ArcelorMittal is working with the International Iron and Steel Institute (IISI) to develop a
sector approach to CO2 monitoring and reduction, to be supported by all major steel
producing countries, which would assess the actual reduction potential through a reliable
measurement of current CO2 emissions and performance analysis.

ArcelorMittal has developed an internal monitoring system and database on CO2

emissions which allows building consistent benchmarking and gap analysis.

Addressing the climate change challenge

Steelmaking is very energy intensive and emits a significant amount of carbon dioxide
(CO2). The production of every tonne of primary steel results in emissions of
approximately two tonnes of CO2 using the best technologies available today.
Steelmaking accounts for 5-6% of man-made (anthropogenic) CO2 emissions, and 27%
of the total emissions from all manufacturing.

Around 90% of the sector emissions come directly from the primary blast furnace
method, which accounts for 60-65% of steelmaking. The main alternative process, the
electric arc furnace (EAF), indirectly contributes 10% per cent of emissions, but is
limited by the availability of scrap and scrap substitutes.

ArcelorMittal has a significant responsibility in the climate change debate. We are aware
of our impact and determined to improve our performance, although it should also be
recognised that primary steel will often be recycled many times, resulting in lower
additional CO2 emissions.

ArcelorMittal has a strong record in reducing CO2 emissions. In Europe for example we
have reduced the CO2 footprint of our steelmaking by more than 20% since 1990. We
have developed a tool to identify, in a comparable way, the footprint of each individual
plant. This gives us the ability to detect and target additional improvements.
Energy Efficiency

We believe energy efficiency and optimisation is an effective lever for minimising

impacts on the environment and improving our operational processes and consumption.
The total potential for consumption reduction, based on all our plants reaching
benchmark performance, represents 10% of the specific consumption i.e. 2 MBTUs
(million British Thermal Units) per ton of liquid steel.

A fully dedicated team within the company has developed energy efficiency assessments
in 22 major plants, enabling the identification and validation of the key actions to be
implemented, mainly to reduce natural gas and electricity consumption. Main areas of
action are gas reallocation and optimisation through the management of power plants and
energy flows.

In Krivih Rih, Ukraine, for example the status of gas available from the process (coke
oven gas, blast furnace gas and basic oxygen furnace (BOF) gas) was examined alongside
its usage in the plant. After some discussions, an important stake was validated in coke
oven gas reallocation to the hot strip mill, and also in the regulation of power plant
burners. In total, 12 key actions were identified, of which nine have already been
launched or about to be launched by the plant. Additionally, the ArcelorMittal Tubarao
plant in Brazil is self-sufficient in electric power generated by gas recovery.

Benchmark analysis of coke usage between plants is also being undertaken and will allow
the reduction on coke specific consumption at blast furnaces. Most of these projects will
also contribute to the reduction of our CO2 emissions and are an important element of
our longer-term CO2 strategy.