ArcelorMittal Kryvyi Rih opposes rail tariffs hikes, urges revision of royalties for iron ore production
KYIV. April 22 (Interfax-Ukraine) - ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) believes that the initiative of the Infrastructure Ministry of Ukraine to increase tariffs for freight transportation by rail by 25-30% is unacceptable.
"We also [as other metal companies] oppose the increase in rail tariffs by 25-30%. We believe that the sharp increase of [the tariffs on] freight transportation is unacceptable. It would be better if they grow gradually," ArcelorMittal Kryvyi Rih CEO Paramjit Kahlon said at a press conference held at Interfax-Ukraine in Kyiv on Tuesday.
He said that another problem is the plan to increase royalties for iron ore production.
"It's important for us. We don't oppose royalties. However, we have a certain difference in our position. We produce 10 million tonnes of concentrate and almost 8 million tonnes of concentrate is processed into steel. We sell only 2 million tonnes of concentrate. If the government was more flexible on the issue and set the royalties for concentrate that is exported, we would not mind it," Kahlon said.
He said that ArcelorMittal Kryvyi Rih processes the major part of iron ore in Ukraine and exports finished products.
"We process the major part of concentrate we made in Ukraine, providing jobs to people here and paying taxes there. We export finished products from Ukraine. Why does the increase touch this concentrate?" Kahlon said.
ArcelorMittal Kryvyi Rih produces long products, in particular rebar and wire rod.