sustainability report 2015 arcelormittal liberia

ArcelorMittal Liberia Sustainability Report 2015 1

Sustainability Report 2015ArcelorMittal Liberia

2015 Facts

Ore shipped:4,157,433 MT

Ore shipped to Europe:

2,840,184 MT

Ore shipped to Asia:

1,317,249 MT

Average FE content: 60.24FE

Liberian employment rate:

98%

Workforce: 2,498

Fatalities: 0LTI: 5LTIFR: 0.53

Students enrolled in ArcelorMittal Schools: 1,320

County Social Development Funds Donation: USD $3 Million

Patients treated at ArcelorMittal hospitals: 15,434

.................................

.................................


Cover photo: Two young ArcelorMittal Liberian environmentalists, Linda Dolo and James Davis, assess revegetation site in Tokadeh mine.

18

373418

ContentsA word from the CEO

Sustainable development through the 10 Sustainable Development (SD) Outcomes

Outcome 1 - Safe, healthy, quality working lives for our people

Outcome 2- Raw materials that accelerate more sustainable transformation

Outcome 3 - Infrastructure that accelerates sustainable development

Outcome 4 - Efficient use of resources, minimal waste and high recycling rates

Outcome 5 - Trusted user of air, land and water

Outcome 6 - Responsible energy user that helps create a lower carbon future

Outcome 7 - Supply chains that our customers trust

Outcome 8 - Active and welcomed member of the community

Outcome 9 - Pipeline of talented scientists and engineers for tomorrow

Outcome 10 - Our contribution to society measured, shared and valued

About the Sustainable Development Committee

4

6

8

16

17

18

19

26

27

30

35

37

42

ArcelorMittal Liberia Sustainability Report 20154

A word from the CEO

Dear stakeholders,

I am pleased to present to you our latest Sustainability Report for ArcelorMittal Liberia, which shares the company’s commitments and achievements for 2015 in the areas of health and safety, the environment, corporate governance, and engagement with the community and other relevant stakeholders.

When I joined ArcelorMittal Liberia as the new CEO in August 2015, the company was facing some remarkable headwinds. Liberia was still grappling with the horror of more than 4,000 lives lost to the atrocious

Ebola disease. At the same time, ArcelorMittal Liberia was suffering the impact of falling iron ore price, which put ever-increasing pressure on our ability to remain operationally viable.

I was struck then, and continue to be struck, by the commitment, strength and resilience of our incredible workforce here in Liberia, which allowed us to avoid any disruptions to our operations and keep our concessions Ebola-free despite the challenges.

Since we set foot in Liberia, our key priorities have been two-


“...global sustainability outcomes help shape our corporate responsibility agenda in Liberia and are a very important part of the way we do business in the country.”

fold: first, to ensure the safety of our employees; and second, to play a decisive role in the Liberian economy’s growth and development, through vital tax payments, royalties and fees we pay to the Liberian government, as well as by providing local people with jobs and meeting our social, environmental and community commitments. I am delighted to report that we continued to do this throughout 2015, in the face of extraordinary challenges. Our commitment to Liberia and its people has not changed.

2015 marked the first year that our Liberia operations reported against ArcelorMittal’s 10 Sustainable Development (SD) outcomes, which

were first introduced by the company in 2014. These 10 outcomes identify the priority areas we must pursue to achieve our goal of becoming the most sustainable steel and mining company. The 2015 Sustainability Report measures our progress against those goals, highlighting our achievements, but also those areas that will require increased focus in 2016 and beyond. That is the only way to ensure meaningful and sustainable progress.

To highlight some of the achievements of the past year: in March 2015, ArcelorMittal Liberia took the decision to form the Liberia Sustainable Development Committee (SDC), establishing a Sustainability Steering Group.

Myself and the wider management team are fully committed to this and our main task in 2015 was the preparation of a sustainability plan for Liberia. The core strategy of the plan, which outlines our commitment to be a long-term sustainable development partner of Liberia, is to design and implement actions and activities that will help us achieve ArcelorMittal’s 10 Sustainable Development Outcomes in Liberia. It links the ArcelorMittal Liberia business plan to the sustainability objectives of the overall group. These global sustainability outcomes help shape our corporate responsibility agenda in Liberia and are a very important part of the way we do business in the country.

Extensive environmental works have also been carried out over the past year by a talented team of environmentalists working on

our Biodiversity Conservation Program (BCP). 2015 has seen the implementation of quality check dams, revegetation works, nature studies and protection of the East Nimba Nature Reserve (ENNR).

In 2015, our Community Liaison Unit constructed wells, town halls, an orphanage, a clinic, and a water system. We continued to use international best practices in our resettlement program, paying a total of US$1.56m in resettlement in 2015.

Also in 2015, thanks to our partnership with the non-government organization VOSEIDA (Volunteers to Support International Efforts in Developing Africa), 300 men and women graduated from our Livelihood Training Program, which offers beneficiaries free agriculture, cosmetology, adult literacy and furniture making courses.

The present report provides a comprehensive overview of our corporate responsibility performance in 2015, and our ambitions for the future of our operations, our communities, and Liberia as a whole. I hope you enjoy it.

With kind regards,

Michel Prive,CEO, ArcelorMittal Liberia


Sustainable development through the 10 Sustainable Development (SD) Outcomes

When ArcelorMittal launched its corporate responsibility strategy in 2008, it positioned itself to be an industry leader in corporate responsibility. Since then the company has built a strong corporate responsibility governance structure, cultivated strong stakeholder relations, made significant corporate social investments and applied industry standard methods in the way it does business. ArcelorMittal Liberia’s environmental and Biodiversity Conservation Program are leaders in the mining industry.

The introduction of the 10 Sustainable Development (SD) outcomes as ArcelorMittal’s corporate sustainability strategy is an important shift in how we do business globally. This shift is crucial for Liberia’s success because, though a natural resource-rich country with high prospects for economic development, Liberia lies on the lower end of the UN Human Development Index, which ranks countries by life expectancy, education, and income per capita indicators.

ArcelorMittal Liberia’s transition from its 2008 strategy, which focused on its four pillars - investing in our people; enriching our communities; transparent governance; and making steel more sustainable towards the 10 SD Outcomes-provides opportunities to improve corporate governance.

Early into the formulation of the 10 SD Outcomes, Liberia had moved ahead to prepare a new CR strategy in 2015 based on the Outcomes. In January 2015, the company introduced a system of reporting on the 10 SD Outcomes, and to date has produced six bi-monthly sustainability reports. This first annual Sustainability Report shows that ArcelorMittal Liberia is on track. Before officially launching the SD Outcomes as a global corporate responsibility strategy, ArcelorMittal Liberia moved to lay the groundwork for a transparent governance structure that would oversee the implementation of the SD framework in Liberia. That led to the formation of the Liberia Sustainable Development Committee (SDC) and

the Sustainability Steering Group (SSG), designed to provide technical support to the SDC.

The Liberia CR team has direct oversight of the sustainability plan for ArcelorMittal Liberia, which outlines the strategy to design and implement actions and activities towards the achievement of the 10 SD Outcomes in Liberia. By linking the ArcelorMittal Liberia business plan to the sustainability

objectives of the overall group, the Sustainability Plan outlines our commitment to be a long-term sustainable development partner for Liberia.

ArcelorMittal Liberia aims to conduct its business in accordance with international and industry best practices and standards, while maintaining its social license to operate in Liberia.

Investing in our people

Transparent governance

Enriching our communities

Making steel more sustainable

Szabolcs Sáfián, a fellow from the Institute of Silviculture and Forest Protection, University of West Hungary and associate researcher at the African Butterfly Research Institute in Kenya conducts study on African Giant Swallowtail at the East Nimba Nature Reserve.


Our progress in 2015

Loading of iron ore at the Tokadeh mine loadout area onto wagons that are then railed to Buchanan, where the ore is

shipped from the ArcelorMittal Port in Buchanan.


Safe, healthy, quality working lives for our people

Outcome 1

Safety is our first priority, meaning all employees must wear the proper PPE when performing tasks at all times. Ninety-six percent of the workforce are Liberians.

Due to the remote locations of Buchanan and Yekepa where ArcelorMittal Liberia operates, the company is aware that its employees’ and their families’ health, quality of life, and safety rest with the policies, procedures, and actions of the Company. 2015 was dominated

Fatality

LTI (Lost Time Injury)

LTIFR (Lost Time Injury Frequency Rate)

Number of community incidents

0

5

0.53

9

by two main issues – over 50% decline in the global price of iron ore and Ebola’s presence in Liberia and the region – which had direct and indirect impact on health, quality of life and the safety of our people; therefore, the company worked continuously towards striking a

balance between dealing with these challenges and meeting the needs of its people. In Liberia, nearby communities are an active part of the operation; so, like employees, decisions and actions are made for the benefit of the wider public.

Safety

Safety Indicators:


Prior to each task risk assessments are conducted.

Safety is our number one priority, and we continue on a journey to zero: zero fatalities and zero Lost Time Injures (LTIs). Between January and May, the Company posted an excellent record with zero LTIs; however, in June and August 5 LTIs occurred (1 in the mine, and the 4 as a result of a single unfortunate

2015 kicked off with the launch of the Safety Plan, which aimed to outperform safety performance of the previous year and improve the base of the safety pyramid – Shop Floor Audits (SFAs). Managers and supervisors were tasked with increasing their audits of the shop floor, leading to 8,302 shop floor audits in 2015 compared to 1,779 in 2014…6,523 additional audits.

incident in which two security guards were attacked and injured by unknown persons while on duty, resulting in four lost-days). With 9,276,665 man-hours worked in 2015, we achieved zero fatalities; however, our Lost Time Injury Frequency Rate ended at 0.53.

• 9,866 observations observed compared to 2,934 in 2014.

• 6,952 positive reinforcements/observations compared to 567 in 2014.

• Level 0 and Level 1 of the Fatality Prevention Standards fully achieved.

• 50% of Level 2 and Level 3 achieved.

• Driving refresher course, assessment, and driving permit issued to all drivers and operators.

• Pre Task Risk Assessment fully implemented.

• Pre Start meetings introduced before all shifts.

• Safety Schools continued...

• Alcohol tests conducted, especially in the festive seasons.

• New safety officers transferred from Project to Operation ensured safety officers on site 24/7.

• Mine training department established at Tokadeh for all mine drivers and operators.

• Tokadeh and Buchanan workshops received major housekeeping works.

Despite 2015’s challenges, ArcelorMittal Liberia made good strides in safety:0

Fatalities

5Lost Time

(2 Security Incidents)

0Restricted Work Case

3Medical Treatment Case

16First Aid Case

Bump and Scrapes

Near Hits & Property Damage

Unsafe Acts / Situations

Bumps0

Total0

Scrapes0

Near Hits17

Total104

Property87

Spontaneous1420

Total9866

From Management Audit8446


The collective bargaining agreement (CBA) signed between ArcelorMittal and its workers’ union in 2012 provides a good basis for employees and management engagements. ArcelorMittal Liberia remains committed to the CBA and continues to adhere to its roles and responsibilities therein. A robust grievance redress and

disciplinary system guarantees that each employee gets a fair hearing in matters relating to complaints, policy infringements, and other disciplinary and grievance-related issues.

In addition, as part of employee engagement and creating a safe environment for our employees, the Human Resources department

organized 55 ‘palava hut’ styled forums where employees freely shared their concerns and questions. The department also continued its capacity building, and recorded 15,285 hours towards training and 1,752 attendances. On an average each employee received 8.72 hours of training in 2015.

The mining industry faced significant challenges in 2015 with iron ore price falling to half the level it was in 2014. This pressure caused mining producers to assess their operations and find ways to run their assets as efficiently as possible.

This context impacted ArcelorMittal directly in the results of its mining business, which in 2014 dropped by 36.8% from US$1.98bn to US$1.25bn.

Number of training hours per employee 15,285 hours / 1752 attendances 8.72 hours per employee

% of your employees covered by collective bargaining agreement

903 of 1017 employees 89%

Man-days lost to labor disputes 531 employees based in Yekepa during the 2 days strike in Aug. 2015

1062

Number of employee/contractor grievances received/resolved

45 of 45 resolved

2015 CBA, labor disputes and training data


To adapt to this new market reality, ArcelorMittal Liberia, like other mining companies, adjusted its business to this ‘new normal’ with cost reductions across the operations, including employment costs. Sadly, approximately 229 ArcelorMittal Liberia employees (31 expats and 198 locals) were impacted.

Throughout the year, ArcelorMittal Liberia kept key stakeholders and

the public informed of the global downturn’s impact on the Liberia operation through high-level government engagements and press conferences.

Though many activities were scaled down to adjust budgets to meet lower sales prices, the company kept its MDA commitments, contributing US$9.4 million dollars in royalties and other fees to the government and over US$4 million dollars to

the county social development fund, Advanced Academic Studies Scholarship, and Scientific and Mineral Development Research Fund.

Despite these difficult decisions, the company exceeded all of its Mineral Development Agreement (MDA) with Liberia employment targets, maintaining a 96% Liberian employment rate for full-time employees and 99% Liberian rate for contractors.

Contiuned on next page

Employment Statistics for ArcelorMittal Liberia

Employment Statistics for ArcelorMittal Liberia contractors

Level

Figures as on December 31, 2015

No. of Employees Liberian Nationals Expats Actual % Target %

Senior Management 11 6 5 55% 25%

Professional, Administrative, Technical and Management

158 147 11 93% 75%

Skilled 763 736 27 96% 80%

Unskilled 126 126 0 100% 100%

Total 1058 1015 43 96%

Contractor No. of Personnel Liberian Nationals Expats

ROSNA LABOUR BROKER 50 50 0

ROSNA CANTEEN 150 148 2

LPGS (SECURITY) 492 492 0

CONTROL RISK 2 0 2

ISOS 3 0 3

RB GROUP BUCHANAN 18 18 0

ALLIANCE OF AFFECTED AREAS INC. (AAA) 56 56 0

GOLDSTONE 141 141 0

FRONTLINE 110 110 0

METSO 1 0 1


Employment Statistics for ArcelorMittal Liberia contractors

Contractor No. of Personnel Liberian Nationals Ex-pats

African Aid 51 51 0

Niyongabo Patrick’s Vision 2 2 0

SEGAL SECURITY 295 295 0

Liberia Indigenous Forum For The Environment - Life 2 TMF 32 32 0

Short Term Contractors 14 14 0

Port - Mechanics 10 10 0

BIVAC - Verification 10 10 0

Operations Contractor 3 0 3

Total 1440 1429 11

Internal surveys conducted in 2015 showed that employees were ‘stressed out.’ With that in mind, the HR department sponsored Psychosocial Counseling Training for a select group of employees, who were then given the authority and responsibility to counsel their colleagues during this difficult year.

Despite Liberia’s three times declaration of an Ebola-free status, ArcelorMittal Liberia remained on guard. All Ebola safety measures introduced in 2014 continued – hand-washing and fever temperature checks at gates; awareness; and drills; and daily monitoring of supplies and materials necessary for Ebola prevention. The Communications team managed fear and maintained top-of-mind awareness through employees’ message tracks, television programs, posters, newsletters, direct engagements and Satellites.

Strong collaborations between ArcelorMittal Liberia and the County Health teams, which proved to be successful during the worse periods of Ebola, continued into 2015. The ArcelorMittal Liberia health teams participated in two

post-Ebola training sessions led by County Health Teams in Grand Bassa and Nimba counties, on methods and measures of battling Ebola and preparatory steps in the control and prevention of infectious and communicable diseases.

• Emergency response

• Epidemic disease management

• Disease prevalence monitoring

• Awareness and surveillance

• Infection Prevention and Control (IPC)

Joint post-Ebola training between ArcelorMittal Liberia and the County Health Teams covered:

Infectious disease expert Professor Adriano Duse, brought in by ArcelorMittal Liberia during the early days of Ebola, played a crucial role in educating Liberia’s medical workers and ArcelorMittal’s workforce on Ebola and its prevention.


The company’s Public Health team formed part of a joint assessment team led by Project Concern International on Ebola surveillance and screening at the Yekepa border crossing from Guinea, an area within less than a 5-mile radius of the ArcelorMittal Liberia’s Yekepa concession.

The two company-run hospitals in Yekepa and Buchanan, and the Clinic at Mount Tokadeh, combined, rendered comprehensive health and medical services to employees, their dependents, contractors, general residents of the concession communities, as well as residents from distant places who sought medical attention at these facilities.

In 2014, ArcelorMittal Liberia played a key role in the construction and support of Ebola Treatment Units (ETUs) and Ebola Holding Facility in Liberia and the counties. Grand Bassa County received its first Holding Unit, almost at the onset of the disease’s entry into Liberia; and the company constructed three Ebola facilities in Nimba County.

The company provided beds for Liberia’s first Ebola Treatment Unit constructed at the ELWA Hospital. Further support to hospitals came through the purchasing of drugs, ambulances, Personal Protective Equipment, thermo scanning and excellent training by infectious disease experts. For the protection of its workforce, ArcelorMittal Liberia transformed units within its Yekepa and Buchanan Hospitals to fully staffed and equipped Ebola Holding Units. With Liberia declared Ebola-free, these facilities are now maintained and are now permanent facilities within the hospital system.

For better quality care of its staff and the nearby communities, the Company invested in the completion of renovation works for its Yekepa Hospital.

The ArcelorMittal Liberia Public Health Department, joined by the Hospital system, continued its fight against malaria through community outreach, educating the public and employees about malaria and its prevention, along with the tangible action of residual spraying at both ArcelorMittal Liberia sites.

In keeping our brand promise of transforming tomorrow, we continue to look for ways to improve our healthcare delivery system to meet the needs of our staff, contractors and the wider communities.

ArcelorMittal Liberia Hospitals treated 15,434 medical cases in 2015, of which 35.7% were malaria-related.

One of three Ebola facilities constructed by ArcelorMittal Liberia in Nimba.

A full range of medical services are offered staff and community dwellers at ArcelorMittal Hospitals in Yekepa and Buchanan.


ArcelorMittal Liberia Hospital System service 2015 service statistics

ArcelorMittal Liberia Buchanan Hospital In 2014, at the peak of Ebola, ArcelorMittal Liberia Buchanan Hospital closed its public services as a way of controlling the Epidemic in the Concession, and collaborated with the County Health team in strengthening its county health services through purchasing drugs and providing other interventions. This is currently under review post Ebola.

ArcelorMittal Liberia Yekepa Hospital Yekepa’s Hospital continued serving both staff and communities throughout Ebola, as there were no other major hospital options in the area for community residents.

Combined Statistics (Yekepa and Buchanan Hospitals)

Employees Dependents Contractors NonAML Total Patients treated

Outpatients 976 2,521 270 0 3,767

Inpatients 79 159 9 0 247

Total 1,055 2680 279 0 4,014


Outpatients 1,427 2,308 609 5,842 10,186

Inpatients 69 160 39 966 1,234

Total 1,496 2,468 648 6,808 11,420


Grand Total 2,551 5,148 927 6,808 15,434

Residual spraying is crucial in protecting the workforce and communities against malaria.


Malaria statistics and trends of incidents reported and treatment taken at Buchanan and Yekepa Hospitals during 2015.

Malaria prevention is at the core of ArcelorMittal Liberia’s public health program. Over the years the company has invested in conducting annual community and concession awareness and prevention campaigns to decrease the rate of malaria for employees and nearby community dwellers.

In 2015, the public health department continued its airborne spraying activities within the concessions and nearby communities, an action conducted every year during the rainy months, when mosquitoes are most prevalent.

April 25th is set aside each year to highlight the malaria disease with World Malaria Day. Last year, the company’s management chose to capitalize on this global awareness by encouraging a month-long education and sensitization campaign to employees and contractors.

ISOS doctors participated in daily safety talks at the shop floor and cascaded their malaria messages upward to senior management through involvement in management meetings. The communication department utilized television screens, newsletters, satellites and

posters to reinforce the malaria messages throughout the month.

All managers and supervisors held discussions with their direct reports, using a malaria message track.

Of all cases treated in 2015, 37.93% were malaria related and ArcelorMittal Liberia’s vision is to reach zero malaria cases in its concession and nearby communities through continual malaria prevention actions.

Employees

Dependents

National

Contractors

Non AML

Total

Malaria cases

Total medical

cases (including Malaria)

Percentage of malaria cases

Buchanan 309 1,113 104 0 1,526 4,023 37.93

Yekepa 382 1,230 190 2,034 3,836 11,419 33.59

Total 691 2,343 294 2034 5,362 15,442 35.76 (Avg)

Free drugs and medical treatment are provided employees and their families at ArcelorMittal hospitals in Buchanan and Yekepa. In Yekepa, drugs and treatment are provided at nominal fees to non-ArcelorMittal employees.


Raw materials that accelerate more sustainable transformation

Outcome 2

For all practical purposes, iron ore mining is not renewable. Hence, this Outcome may seem less relevant to ArcelorMittal Liberia.

However, the ore that ArcelorMittal mines in Liberia is used to produce steel, which provides opportunities for ArcelorMittal to adopt innovative

methods to design more energy-efficient products, using fewer resources at minimum costs to the environment. In Liberia, ArcelorMittal will continue to adopt current and emerging standards and best practice to promote sustainability in its mining operations.

This will include the development of the appropriate governance processes to independently prove that the way we produce iron ore meets social, labor and basic human rights standards.

At sites like the Baltic 2 installation by Siemens, ArcelorMittal’s customer, wind turbines are subject to extreme climatic conditions such as freezing waters and regular storm surges. ArcelorMittal is

supplying heavy duty steel plates to four of the company’s largest offshore installation projects. With some wind farms positioned

more than 50 kilometres offshore, quality is a key consideration for Siemens.


Infrastructure that accelerates sustainable development

Outcome 3

The iron ore industry’s drastic shift in 2015, coupled by the suspension of the Phase II Project stemming from a force majeure declaration by contractors due to Ebola, caused the company to rethink its sustainability strategy, and seek bold and creative options for mining to sustain production. To that end, exploratory drilling to quantify and qualify Tokadeh’s ore commenced, with completion by the end of 2015.

On the rail line, which ArcelorMittal Liberia leases from the Government of Liberia, the company invested in 20,000 new high quality and safe ties to replace defective ones. All materials used within the company’s track structure are to AREMA (American Railway Engineering & Maintenance-of-Way Association) standards.

In August of 2015, ArcelorMittal Liberia worked in partnership with the Liberia National Port Authority to test and install the “aid to navigation” facility which led to the approval

Key benefits of a 24/7 Port operation are: 1. Increase vessel traffic,

which implies an increase in government revenue through tariff, taxes etc.

2. Competitive and speedy turn-around time, with 24 hours marine activities or timely berthing of vessels that arrive after last pilot.

3. Full utilization of all berths and berthing opportunities.

4. Reduce and eliminate vessels idle time on all berths.

5. Safety navigation when approaching the harbor.

6. Safety of maneuvering vessel with the harbor, especially after dusk.

7. The demand for additional work force from all stakeholders.

Though other products could be included in this selection, each action written about in this section meant an economic or social impact to Liberia while boosting efficiency and creating a more sustainable operation.

ArcelorMittal Liberia made notable contributions towards creating and maintaining sustainable infrastructure in 2015, for both its operations and Liberia. Since 2005 and to date, ArcelorMittal Liberia has invested $1.7 billion in its operations, with $500 million invested in rebuilding local infrastructure including local health and education facilities.

of a 24/7 operation at the Port of Buchanan.

Speaking at a news conference in August 2015, NPA’s Acting Managing Director David Forkpa Williams noted that this “move by the authorities of the NPA and ArcelorMittal Liberia is a key achievement at the Buchanan Port, that would boost government’s desire to speedily improve government revenue generation and strengthen Liberia’s economic capacity at an appreciable level.

This achievement would stimulate several economic initiatives and employment opportunities at the Port of Buchanan with the institution’s modern international standard capacity,” Mr. Williams was quoted as saying.

The Port of Buchanan is Liberia’s second largest seaport and one of the frequently used facilities of the NPA that promotes economic activities in the country.

Transhipment at the ArcelorMittal Port of Buchanan in Grand Bassa, Liberia.


Efficient use of resources, minimal waste and high recycling rates

Outcome 4

One of the effects of reduced budgets, necessitated in 2015 by deteriorating market conditions, is the need for resources to go further. Across the Liberia organization, some good measures were taken throughout the year towards being more resourceful, recycling more and repurposing products where possible.

The Estates department, responsible for the day-to-day welfare of staff, had accumulated inventory worth nearly USD$20,000 over the years. These items - old home and office furniture, refrigerators, air conditioners, and other knick knacks – made their way home with employees who had the opportunity to rummage through these finds during a sort of “free flea market.” The Estates team, with permission from management, decided that these items, with some refurbishment could find new homes rather than ending up in a garbage dump somewhere.

The 2006 Mineral Development Agreement granting ArcelorMittal Liberia the right to operate in the Country, described assets transferred to ArcelorMittal Liberia from its predecessors as “destroyed or wasted.” ArcelorMittal Liberia, after assessing these facilities, salvaged what they could, rebuilding rail cars, the Port of Buchanan, tracks, and other sustainable infrastructure for its operation.

In 2014, ArcelorMittal Liberia signed over a significant portion of this scrap to the Government of Liberia as a donation to fund education in Liberia. Removal of this donated

scrap began in the latter part of 2015.

ArcelorMittal Liberia uses recycled plastic ties for its rail work, and as stated in Outcome 2, the Rail team replaced 20,000 defective ties to AREMA (American Railway Engineering and Maintenance-of-Way Association) standards. Additional scrap, mostly built up in the last 10 years, will go to infrastructure works such as repairs of fence posts, build up gates, equipment and vehicle repairs. Another use in the concession has

been the melting of some scrap into window bars, serving now as a security measure for air conditioning protection.

Mining requires a high level of oil consumption, and oil waste is sent to recycling facilities in Monrovia, through the intervention of the Environmental team.

Likewise, old tires, no longer useful for fender replacements, also found new homes at recycling facilities.

Our work this year shows new ways of reducing waste.

The Company rebuilt old rail cars to transport ore at its rail workshop in Buchanan.


Trusted user of air, land and water

Outcome 5

As a mining company, we are mindful of the negative impact the industry can have on the environment, especially if left unchecked. There exists a close collaboration between the mining and environmental teams at ArcelorMittal Liberia, both passionate about their work.

A true environmentalist concerns himself or herself with protecting the environment, fiercely, as an active participant in ensuring that the environment is protected for generations to come.

ArcelorMittal Liberia’s Policy on Caring for Nature, developed in 2013 by its Environmental Department states that our vision is “to be able to tell our grandchildren when we are old: “We used up Nimba’s iron ore, but we left it a healthier, more prosperous place: The forests are better, the air and water cleaner, and the farmers better off than they were when we started. We acted responsibly.”

This policy guides the day-to-day work of this team, who then ensures that every miner, mine supervisor and manager is also aware and committed to this vision. A tour of their work in Tokadeh and Grand Bassa highlights the success of their collaboration.

Since 2011, which marks the start of the ArcelorMittal Liberia operation, the company has focused on the development of a sustainable and resilient rural landscape around areas impacted by the operation,

through its Biodiversity Conservation Program (BCP).

Implementation and success of this outcome has hinged on a high level of engagements and collaborations with the communities, government agencies and NGOs, even before production began.

Central to this landscape is the East Nimba Nature Reserve (ENNR), a bio-diversity hotspot, named in 2003 as a Liberia protected site, which in 2013, 10 years later,

“We used up Nimba’s iron ore, but we left it a healthier, more prosperous place: The forests are better, the air and water cleaner, and the farmers better off than they were when we started. We acted responsibly.”

ArcelorMittal’s Environmentally Friendly Farming initiative forms part of its Biodiversity Conservation Program


ArcelorMittal Liberia sponsored the crafting, signing and publishing of an ENNR Management Plan. In 2015, the company entered an agreement with Fauna and Flora International (FFI), an NGO operating in Liberia, for implementation of the plan. Under this Plan, FFI provides technical support and broad capacity building, general management, monitoring and research, education, innovative financing, climate change adaptation, awareness raising and outreach, law enforcement and patrolling, sustainable community empowerment, participation and inclusion, sustainable livelihoods support and skills training, and cultural values. With the ENNR in Liberia adjoining a similar nature reserve in neighboring Guinea, a transboundary management and development plan has lots of sustainability opportunities and potential; therefore, it is a topic highlighted for future discussions. Adjoining the ENNR are the forests of the Zor, Blei and Gba Clans, three communities supported by ArcelorMittal Liberia through the signing of MOUs with their Community Forest Management Bodies (CFMB), which since 2012 have supported forestry activities, including the construction of offices in each community.

During 2015, ArcelorMittal Liberia continued this support through monitoring activities and biodiversity works, field and office equipment assistance, stipends for the guards and direct institutional capacity building.

To redefine a culture where livelihoods are less dependent on forests – therefore intrinsically more sustainable – an agreement between ArcelorMittal Liberia

and Conservation International to develop Conservation Agreements (CA) with conservation agriculture and improved husbandry is in the works. These agreements, which are now in action, will lead to the stabilization of farming systems, away from the unsustainable reliance on shifting cultivation. As farmers become more understanding of the process, they like it; therefore we believe CA is a great long-term solution for intensifying agriculture and reducing encroachment into areas of primary rainforest.

It is difficult to assess the sustainability of forests in Liberia because of the constantly changing forestry-agriculture mosaic, as shifting cultivation clears areas that return to fallow a year or two later and then gradually revert to forest.

An assessment of forest cover around our operations in Nimba was conducted in 2008, 2012 and 2015, which appeared to show that there was more forest cover at the last sampling date than earlier.

However, it was not possible to judge the overall quality of that forest (for example, 1.0 million ha of 70%-average stocked forest now may not be as good at 0.9 million ha of 90%-average stocked forest in 2008). Nevertheless, the findings suggested that the significant waged employment provided by ArcelorMittal Liberia in the area might well be showing a positive impact in reducing reliance on forests for agriculture. Further research is needed to assess whether this has a net positive or negative impact on carbon balances.

ArcelorMittal signed three MoUs to support the management of the Zor, Blei and Gba forests communities in East Nimba Nature Reserve.


In 2015, the Nimba-based NGO Agricultural Relief Services, Inc. expanded the BCP’s pilot agriculture and livelihood projects to an additional three communities in West Nimba.

This support included training in conservation agriculture, sustainable farming methods, integrated pest management, tree crops and microfinance.

Meanwhile another local NGO, Rural Integrated Center for Community Empowerment, increased the number of communities it is working with, up to seven.

They have continued to train farmers in conservation agriculture and microfinance projects, with more emphasis on swamp rice farming and dry season vegetables.

Dr. Adam Manvel, a rural livelihoods specialist, and Professor John Quinton, an expert soil scientist at the University of Lancaster, conducted field visits to complete the soil-social review and develop the BCP’s agricultural strategy.

Dr. Manvell also undertook an investigation into animal source foods and alternatives to bush meat in northern Nimba.

Conservation Agreements Case Study

Other key activities in 2015 towards supporting sustainable lifestyles at ArcelorMittal Liberia included:

• Continued support for a community tree project, including facilitation of nursery management training and implementation of a pilot community tree-planting project.

• Forest Cover Change Assessment to compare change in land cover by the environmental consultants Earthtime, Inc.

• Capacity building of NGO partners in logical framework

assessment, design of on-farm trials and baseline surveys.

• Continued collaboration with People, Rules and Organizations Supporting the Protection of Ecosystem Resources (PROSPER), a development program funded by USAID, to support general CFMB activities and community forest guard (CFG) patrols.

ArcelorMittal Liberia sponsored Farmers’ Trade Fair with implementing partner, RICCE

Six communities are beneficiaries of Conservation Agreements that have provided conservation jobs to 51 hunters.

Testing of two rice varieties at five swamp locations are underway, utilizing 20 students training in conservation monitoring as monitors.


Case Study: Wing-Yunn Crawley

The individual behind most of ArcelorMittal Liberia’s work on sustainable lifestyles is Wing-Yunn Crawley, a British ecologist, biodiversity manager.

Based at the town of Yekepa, close to our mine in Nimba County and near the border with Guinea, Wing is four years into her role. Her strong links with local communities, NGOs and government agencies are critical for support and buy-in. Featured at international conferences, the program is a global group showpiece, as result of her work. Like many

The BCP is a key indicator of how ArcelorMittal Liberia continues to demonstrate that it is a trusted land user.

The Program is increasingly recognized as a model for other companies and sectors to follow in fulfilling their corporate responsibilities towards landscape management.

This has been recognized by the Dutch foundation, IDH Sustainable Trade Initiative, which is responsible for the implementation of one of two major investments by the Norwegian International Climate and Finance Initiative in Liberia.

At the end of 2015, a co-financing agreement for the BCP was signed between ArcelorMittal Liberia and IDH, to run for the next five years, if the first year pilot scheme is successful.

Rehabilitation of areas mined has continued over the years and was initiated over significant areas in 2015, since responsible land

ecologists, Wing is pioneering new approaches to balanced relationships between mining and the environment. In 2015, Wing received two international accolades: 100 Global Inspirational Women in Mining for 2016 and a new species of butterfly, Wing’s Epitola – Cephetola wingae sp. nov. is named in her honor.

Discovered by lepidopterists working in the mountains near our mines, Wing’s Epitola is one of several newly described species.

management in this environment starts with the control of drainage and runoff water quality, preventing erosions.

Through the year we continued to monitor our existing revegetation trials at the old LAMCO mines, in what is now the East Nimba Nature Reserve, and collect data on the survival of a range of indigenous pioneer tree species.

In addition, around eighteen thousand indigenous tree seedlings were planted in two main sites.

These works had the effect of controlling sediment much more effectively than in previous years.

Monthly monitoring of all of the surface water flows around the mine showed no exceedances at the Company’s entire standard for

ArcelorMittal LIberia rehabilitates areas after mining by replanting indigenous trees and grass slips.


suspended sediment (derived from World Bank guidelines).

Once the dry season began, attention was turned to gully and drainage control. A bigger and better check dam construction, to protect the ecologically sensitive swamp and avoid floods, began.

Liberia’s usual high rainfall levels and the company’s extensive uncovered operations cause sediment runoff; therefore there is a constant concern through periods of intense tropical downpours and the long wet season in general.

In early 2015, a concerted effort was made to improve sediment control on the mine site. A new mine infrastructure team was

constituted, working closely with the environmental rehabilitation team.

Both machine-based and labour-based methods were employed and large groups worked right through the year to build check dams, settling ponds and other structures, including the revegetation of bare surfaces using planted grasses and trees.

The use of gabion check dams was introduced on a much bigger scale and the groups greatly improved the standards of their construction under strict supervision from the environmental team.

This demonstrated a new, all-Liberian capability to produce a very high standard of gabion works which could now be replicated elsewhere.

Millions of grass slips were planted to improve sediment control on the mine site.

Gabion check dams were built in 2015 to protect swamps from sediment runoffs during the rainy season and prevent flooding.


Case Study: African Giant Swallowtail and Nimba Otter Shrew

African Giant Swallowtail

Nimba Otter Shrew

ArcelorMittal Liberia has also commissioned a number of lines of scientific research on issues related to the understanding of biodiversity, reinforcing the company’s commitment to protection of the land where it operates.

Most innovative among these has been the pilot radio-tracking of the African Giant Swallowtail Butterfly (Papilio antimachus).

Probably the world’s biggest insect, as its ecology is poorly understood. It is usually very difficult to catch in the rainforest canopies, but in Nimba, the males come close to the ground for mating displays above the grassy mountain tops.

This is the first such exercise in Africa, which used specially developed minute radio transmitters

Another telemetry survey continued as part of the long term project to improve understanding of the very rare and enigmatic Nimba Otter Shrew. In 2015, the survey ran from January to May, then broke for the rainy season before resuming in November. The team worked

glued to butterflies who were tracked using a number of triangulated receivers. A total of nine males were tagged during the pilot project in late 2015.

The results recorded by the receiving stations need lengthy analysis and the report will be submitted in 2016. As was hoped, a lot of very useful information was learnt during the pilot study: for example, a number of modifications are being made to the tags to make them smaller and lighter.

throughout the night as the Nimba Otter Shrew is nocturnal. Once an adult has been tagged they record the location of the animal at 15-minute intervals using GPS.

The team has spent considerable time observing the species in the

wild because of this work, and has observed an adult female carrying its young by the neck in her mouth. In 2014, the team radio-tracked three adults with the longest tracking time lasting just over three nights. In 2015, three more individuals were tracked between six and seven nights, and the survey confirmed the presence of this endangered species at Mount Gangra and the Blei Community Forest.

Ideally 10 individuals need to be tracked for as long as possible in order to have enough data to conduct a robust statistical analysis of the results. Because they are so rare, it takes thousands of trap-nights to catch one individual. The survey will continue in 2016.

ArcelorMittal Liberia’s shipping operation affect about two square

The African Giant Swallowtail


miles out of the 2.1 million square miles of the inshore section of Liberia’s territorial waters reserved for artisanal fishing, yet we believe those miles are important to the preservation of sea life. On the coast, our tracking of artisanal fisheries continued throughout 2015.

Commenced as an environmental safeguard during offshore transshipment operations, the results proved important in monitoring the relative movements of fishing canoes and ships, especially as it relates to the health and sustainability of inshore fishery.

Participating fishermen are selected at random and carry a GPS tracking device that shows exactly where they travelled and caught fish.

Monitoring looks at three types of fishing methods: hook-and-line; bottom-set nets from single-person dugout canoes; and drift net fishing from larger, semi-motorized canoes. On return, they count and record the species and numbers of fish.

The team continues to collect a considerable database on the conditions and variability of what

we can now understand to be a very sustainable, if not dangerous, livelihood. Liberia is located in the tropics, with high humidity and dust generation limited to the relatively short dry season, with limited emissions to air.

This means that ArcelorMittal Liberia does not have a significant impact on air quality, except in localized areas close to roads. For these, standard mitigation measures such as traffic speed reduction and dust control by watering are used effectively.

ArcelorMittal Liberia’s environmentalists continued artisanal fishing monitoring with small-scale fishermen to determine the health and sustainability of inshore fishery.


Responsible energy user that helps create a lower carbon future

Outcome 6

Most of ArcelorMittal Liberia operations are dependent on diesel fuel, including the on-site generation of electricity. Truly sustainable energy reduction schemes are therefore elusive at present, and tend to be relatively short term.

A key way to lower fuel consumption – and therefore carbon emissions – is to reduce the overall movement of materials. There is a limit to the possibilities for reducing ore product transport beyond eliminating double-handling. Even so, tighter mine planning, better stockpiling management and more streamlined transport in 2015 reduced the

amount of double handling during the year, by removing over-stocked piles at the mine and the port which require additional movement to make way for quantities above the stockpile capacity.

More can be achieved by reducing the transport distances of waste materials. In 2015, we investigated a number of alternative waste dump locations closer to the active pit than the existing main waste dump, and eventually determined that the best option was to store both lower grade ore and waste spoil on old mine benches. Several new short-haul waste dumps were designed and

brought into service on this basis.

An initiative was repeated, using the 2015 budget, but not fully implemented until January 2016, to distribute a large number of efficient charcoal stoves. Charcoal is the main cooking fuel in Liberia, even in the big cities, and its production affects considerable areas of forest.

The promotion of more efficient stoves, assembled in Liberia by the NGO Sjedi, is strongly welcomed by users on economic grounds, as well as having significant environmental benefits.

Better stockpile management and mine planning have decreased the use of fuel, thereby lowering carbon emissions.


Supply chains that our customers trust

Outcome 7

ArcelorMittal Liberia has strived to create an approachable and trustworthy procurement system where all businesses, large and small, are encouraged to compete for contracts. A consistent process is applied across the board, beginning with all businesses or entities interested in doing business with ArcelorMittal Liberia first completing a vendor form. For Liberian registered businesses, the vendor form is accompanied by a business registration and tax clearance, which proves that the business is legally operating in Liberia and tax compliant.

Likewise, international businesses are required to provide legal documents from their respective countries when submitting their vendor forms. Once all documents are received, corporate tools are used to check each vendor’s background, after which all information is sent to a compliance officer who certifies that

ArcelorMittal Liberia is indeed doing business with a credible vendor.

Key to the ArcelorMittal Liberia supply chain strategy is the growth and success of our vendors, especially Liberian owned businesses. Services such as construction, security, environmental and community-based works are sourced, almost exclusively, from Liberian owned companies.

Where larger non-Liberian vendors are contracted, the company encourages them to always sub-contract Liberian owned business to further enhance and develop Liberia’s business and industry landscape.

A few years ago, ArcelorMittal Liberia began working on a project with a non-government organization called Building Markets in conjunction with USAID, where local vendors will showcase their products to ArcelorMittal and set up relations with the company. The company tells them its needs and they tell

ArcelorMittal Liberia what they have, and in that way establishing a relationship with them.

This remains an important priority for the company, and to date ArcelorMittal Liberia has built some great and long-term relationships with local vendors making impact on their communities and Liberia as a whole.

One notable practice of the ArcelorMittal Liberia procuring process is to always look in Liberia first for vendors, and as long as quality and good price margins are met, to buy local.

ArcelorMittal Liberia understands and believes that by providing sourcing opportunities to local Liberian owned businesses it has a significant impact on transforming Liberia’s economy, job market, infrastructure, communities, and the lives of the Liberian people.

Case Study: Eco-stoves to communities

A joint team visited each community to talk about the conservation agreements and distribute cook stoves purchased by ArcelorMittal Liberia from Sjedi.

These eco-stoves produce less smoke, and use less charcoal and wood. Benefits include less deforestation and burning of fossil fuel; less time searching for wood; less money spent on charcoal; and faster cooking time so less time spent cooking.

Community members were very grateful to receive eco-stoves donated by ArcelorMittal


Case Study: Community contractor hired for bush cutting along rail line

Twice a year, 390 persons from 26 communities along the rail line where ArcelorMittal operates, 15 per community, are hired for a period of 2 months to carry on bush-cutting towards maintenance of the tracks. Each community has a contractor head responsible for the 15-member team. Below are testimonials from two contractor heads.

“Our community is appreciative about what ArcelorMittal has offered and many people have been benefitting. We are very grateful to the company for the privilege given to our community.”

Paul Zordyu Contractor Head Water and Sewer Community Grand Bassa County

“The program has impacted our lives, because we work twice a year which brings relief to our families. We do rotational where we change members so that the full community can feel the impact.”

James KarmenContractor Head Zolowee CommunityNimba County

ArcelorMittal Liberia’s rail line is 240KM and requires regular bush cutting for the free movement of trains along this track.


Success Story:Liberian business grows from small to large

Security Expert Guard Association of Liberia is a Liberian owned and operated security firm contracted by ArcelorMittal Liberia to provide complete security services for the company’s operations in Tokadeh, Yekepa, Buchanan, and Green Hill Quarry. Today, as a result of this contract, 792 men and women are employed with benefits by SEGAL to carry out security guard services for ArcelorMittal Liberia.

For 11 consecutive years, commencing from November 1, 2006, for Yekepa, Nimba County and from April 1, 2016, for our recently won site, Buchanan, Grand Bassa County, the Security Expert Guard Association of Liberia has employed a significant number of men and women to provide security services for ArcelorMittal’s operations.

According to SEGAL’s owners, Cyrus Momo and Lionel Keller, the experience has been “enormous,” and “heartwarming.” SEGAL listed the below as benefits of being a contractor of ArcelorMittal Liberia• The morale of our company is

high considering the fact that we are providing jobs to many of our citizens in Nimba, Bong and Grand Bassa where our

operations and/or activities are based, thereby reducing poverty in those counties.

• The present number of our workforce under the ArcelorMittal Liberia contract when added to the existing number of our work force with other contracts makes us the biggest employer now in the country second to the Government of Liberia/GOL.

• Another glory we are much delighted to claim is that considering that ArcelorMittal is a world steel giant, as a security service provider, their prospects for more contract opportunities increase, as most companies, foreign missions, hotels,

residential places, etc. want to do business with us.

• In addition, ArcelorMittal Liberia has one of the most encouraging security offers in the country, which helps to boost our financial capacity, enabling us to pay salaries and other allowances in a timely and orderly fashion. It has also helped to attract professionals whose expertise has positively impacted our output. Unlike SEGAL, other security companies in the country are grappling with the issues of paying their guards on time, and that has come to sour relationships with their clients, with the attending effect of contract failure.

“Our blue print solution embraces a safe and secure environment,” said the owners.


Active and welcomed member of the community

Outcome 8

Community Resource Fund 3,000,000.00

SRF (Min Dev Research Fund) 300,000.00

Surface/Land Rental 100,000.00

Custom User's Fee 300,000.00

Surface/Land Rental (Inflationary Adjustment) 30,000.00

Royalty Payment 1,463,402.00

Royalty Payment 1,463,402.00

Royalty Payment 190,485.00

Semi Annual Customs Fees (MDA) 300,000.00

Royalty - Q2 2015 1,371,157.00

Royalty - Q3 2015 964,101.00

Whtaxes - 2015 (Payroll) 6,028,277.79

Whtaxes- 2015 (Contractors) 2,954,794.02

Activity / Project Beneficiaries Value (US$)

County Social Development Fund Bassa, Bong & Nimba Counties 3,000,000.00

Advanced Academic Studies Scholarship All Liberians 335,305

Scientific and Mineral Development Research Fund MLME 100,000.00

Community Investment Bassa, Bong, Nimba & Elsewhere 245,205.00

Livelihood Support Program Nimba, Bassa, Bong 539,000.00

Total 4,219,510.00

MDA Social Commitments

RICCE and ArcelorMittal farmers trade fair event. RICCE is a non-governmental organization that received a grant from ArcelorMittal to introduce Conservation Agriculture to farmers as means of enhancing food security and income of communities along the East Nimba Nature Reserve.


There are many communities between Grand Bassa, Bong and Nimba counties in which ArcelorMittal Liberia has built, and must maintain, valuable relationships centered around jobs, land, supplies, social services, security, capacity building and numerous other concerns. Management of these relationships require two-way communications between the communities and ArcelorMittal Liberia; and the Community Liaison Unit, Communications, and Corporate Responsibility departments within the company are fundamental to making this happen.

ArcelorMittal and the Liberian government placed communities at the heart of the Mineral Development Agreement (MDA) they signed, exemplified clearly in articles on land, education employment, environment, and community resources. Each year since 2006, an annual social contribution of US$3 million is disbursed to the government for the benefit of Liberian communities.

Ebola represents a situtaion which demonstrates how crucial and successful these relationships are, despite some challenges. During Ebola, the communities and ArcelorMittal Liberia relied on each other to survive the crisis.

From the communities’ side, the company gained information on cases; and collaborations between the ArcelorMittal Liberia medical team and county health teams were exemplary.

Though most actions were recorded in 2014, the results of hard work, teamwork, and communication were seen in 2015 with Bassa, Bong and Nimba showing significant reduction in Ebola cases, compared to other

counties. Some of ArcelorMittal Liberia’s most notable community level collaborations were:1. Bassa Youth Caucus, a group

consisting of young people across Grand Bassa, were supported by ArcelorMittal Liberia to canvass all of Grand Bassa County, going house to house, giving out posters and educating families on Ebola and its prevention.

2. ArcelorMittal Liberia invested $104,000 in contact tracing, contracting Africare, a Liberian-run NGO to conduct contact tracing in the most hard to reach towns and villages in Grand Bassa and Nimba Counties, while distributing buckets, soaps and clorox to the communities.

3. The first Ebola Holding Unit in Grand Bassa was built at the Government Hospital, in close collaboration with the county administration.

4. In Nimba, all three of the County’s Ebola facilities were built by ArcelorMittal Liberia, in close cooperation with County Health Officers and the Superintendent.

5. Additionally, ArcelorMittal Liberia provided early Ebola education, contracting infectious disease expert Professor Adriano Duse, who conducted training with staff at all clinics and hospitals serving the counties, in addition to providing PPEs and thermoflashes.

For a period of three months, ArcelorMittal donated $17,000 in drugs to the Grand Bassa County Health team during the Ebola crisis.


In total, ArcelorMittal Liberia invested $1.5 million dollars towards the fight against Ebola between 2014 and 2015, working hand in hand with the communities and counties.

Prior to the start of ArcelorMittal mining at Mount Tokadeh, thousands of inhabitants lived, farmed, and mined there. In order to carry on mining activities, families had to be relocated and new livelihoods created, and ArcelorMittal Liberia’s resettlement program provided a win-win situation where both the company and inhabitants could benefit; however, its success centered on engagements and relationship building.

In 2015, the company supported communities in several ways:

• US$1.56 million was paid in 2015 with US$7 million dollars paid in resettlement to date by the company.

• 11 new hand pump wells were constructed in Nimba, Bong & Grand Bassa County

• Fencing was completed at the Betty Jonah Orphanage

• Phase I of the Zolowee water system rehabilitation is completed.

• A new town hall was constructed

ArcelorMittal Liberia Resettlement officers over the years have had to become active participants in the communities around the mine and other areas where the operation impacts the communities, to ensure that the company hears and addresses the needs and concerns of the people, while also making sure that ArcelorMittal Liberia’s objectives are met.

As a result of these engagements, communities have received much-needed support, resettlers are benefitting from livelihood training, and USD$7 million dollars has been paid them to date for their resettlement.

in the Rock Crusher community in Bong County

• A new town hall was constructed in Wamah Town

• Renovation was done for Zowienta County clinic

• Several homes in the Nekreen community in Bassa were re-roofed.

Going beyond cash payments, the farmers and miners are also provided with the opportunity to enroll in a livelihood training program where agriculture, cosmetology, adult literacy and furniture making courses

are offered free. In 2015, VOSEIDA, ArcelorMittal Liberia’s implementing partner of the livelihood training program, graduated 300 former farmers and miners.

A similar program is also offered in Buchanan and Bong County through DEN-L, VOSEIDA’s counterpart. Programs such as these make ArcelorMittal Liberia’s presence a must for these communities.

County Location Type of Asset # of Beneficiaries Amount Paid

Nimba TMF/Tokadeh Crops, Huts, TLC 280 1,398,384.52

Nimba Gbapa Forest trees N/A 150,000

Grand Bassa Neekreen Shelter 20 12,268.43

Total 300 1,560,652.95

Resettlement Compensation Payments - Cash, farm huts, TLC January – December 2015

A farmer receives resettlement payment from ArcelorMittal. The company has paid $7 million to resettle farmers around its Tokadeh mine.


Youth Development Program“I can fix tables, benches, door and window frames. As a woman I am proud and I encourage other women to learn trade. I thank and appreciate ArcelorMittal for this opportunity.” Alicia Wou, Carpentry, YDP

Success Story:Livelihood training benefitting young community dwellers

Through ArcelorMittal Liberia’s Community Liaison Unit (CLU), the Catholic Diocese of Gbarnga and Sanniquellie/ Youth Development Program (YDP) was hired as implementing partners to provide livelihood skills development training for 101 ‘ex-diamond boys’ displaced by the construction of the North Sedimentation Dam in Gbapa Bush, Nimba County. Today they are all undergoing training for various programs through the ArcelorMittal Resettlement Program.

“My life was difficult, to even get $5.00 was difficult. I am learning construction and all areas of construction. What I am achieving today tells me that I am able to stand alone tomorrow. Without trade, my life would have been difficult. It is important that we, the youth, gain some knowledge. I am grateful to

ArcelorMittal for their hard work and we ask that they continue to help us. Tomorrow as I leave from here my life will be better.” Aaron Sumo, Ex-Diamond Boy, Construction training, YDP The Company continued its support to the youngest members of society through the Community Liaison Department. Fifty-one children received Sponsor-A-Child support through tuition payments, with another 70 students provided uniforms, shoes, pens, pencils and books. ArcelorMittal Liberia’s Education Enhancement Project implemented by the local NGO, SEARCH, in Sanniquellie, as part of the livelihood restoration program gave stipends to students in a back-to-school package.

ARS and RICCE projects completed their first rice harvests using improved rice varieties with high yields and resistance to lowland stresses.

In Liberia, ArcelorMittal is rated as one of Liberia’s most committed, bold, and top contributors to the country’s economy. Not mere words, ArcelorMittal Liberia has consistently demonstrated these attributes. 2014 and 2015 were trying years, but so was 2008, when the company committed itself to remaining a partner for Liberia through one of the world’s worse economic times.

At the onset of the Ebola epidemic in 2014, the company pledged its support to the government and its people and took bold steps towards fighting for Liberia’s economic stability, reputation, and health.

When Liberians were still unsure what Ebola was and how it could

be prevented, ArcelorMittal, within a few weeks of Liberia receiving its first Ebola case, flew in a renowned infectious disease expert, Professor Adriano Duse. With a cool attitude and vast knowledge of the disease, Professor Duse began engaging the Government, communities, the health community, NGOs, and ArcelorMittal Liberia employees on how to protect themsleves and their families against the disease, how the disease is spread, and measures that had to be implemented immediately.

As a result of Professor Duse’s visit, ELWA hospital received its first set of beds; the airport got an equipped Ebola triage; thermoscanners were brought into Liberia for the first time and distributed to hospitals, clinics,

Aaron Sumo, an ex-diamond boy, is training to be a professional carpenter through ArcelorMittal’s livelihood training program.


government offices, private sector and within ArcelorMittal Liberia; Personal Protective Equipments was introduced and healthcare officials were trained on its use.

ArcelorMittal initiated the forming of the “Ebola private sector mobilisation group” (EPSMG), a coalition of more than 80 companies to align private sector capability with the international Ebola response.

Initially launched as a platform for dialogue amongst major mining companies operating in the affected countries, EPSMG later on included companies operating in a broad range of sectors, as well as 40 civil society/government bodies. ArcelorMittal continued to chair the group.

What started as an inter-company sharing of information has since grown to include advocacy for a global response to the Ebola virus disease and the mobilisation of in-country resources to support the humanitarian and healthcare first responders.

According to OCHA, this group, “established to facilitate a mobilized and coordinated private sector response to the Ebola virus disease in West Africa,” contributed $21 million dollars in cash donations.

Collectively, the group’s donation of vehicle equipment included 24 vehicles, 15 ambulances, 9 motorbikes, 5 water tanks plus generators and excavators. In medical supplies, donations totalled 4 million latex gloves, 8,000 gallons of disinfectant, 200 pallets of medicines, 6 containers of PPE, and 50,000 liters of chlorine.

Additionally, 23,150 mobile phones and 10,000 smart phones were purchased, plus 13 global EPSMG meetings, 48 country meetings and an Ebola care app for tracking also resulted from the EPSMG. Overall, the group supported food, logistics, communication, education and awareness, and a rebuilding of public health systems.

On September 27, 2015, the company received an award from President Bill Clinton on behalf of the Clinton Global Initiative at its Annual Meeting in New York. The honor formed part of the Clinton Global

Citizen Awards, which recognizes visionary leadership in solving pressing global challenges.

“The award marks ArcelorMittal’s leadership in responding to the 2014 outbreak of the Ebola virus in West Africa, which is now accepted as the most extensive outbreak in the nearly four-decade history of the disease,” said the Clinton Global Initiative.

ArcelorMittal received‘Excellence in the face of adversity’ award – presented by the Institute of Risk Management – recognises how ArcelorMittal was able to continue operating its iron ore mining and shipments without interruption throughout the outbreak of Ebola in Liberia, as well as the creation of the Ebola Private Sector Mobilisation Group (EPSMG) which was founded to coordinate and optimise the response by the private sector operating in West Africa to the outbreak of Ebola.


Pipeline of talented scientists and engineers for tomorrow

Outcome 9

One of Liberia’s greatest needs is the improvement of the Country’s education system from early childhood learning through graduate studies. A sweep through Liberia will show how a deterioration in education has taken place over the years, dropping from pre-1980 standards where education in Liberia ranked amongst the best in Africa.

For this reason, ArcelorMittal Liberia participates in education from elementary through post graduate studies and trade (seen in outcome 8).

We believe this will benefit the country, the communities where we

work, and ArcelorMittal Liberia.For ArcelorMittal Liberia, this enormous challenge plays a vital role in the Company’s overall structure.

At every level of the education system, the Company participates and is cognizant that continuation of a great operation relies on how we can transform young Liberians today for the running of a sucessful ArcelorMittal Liberia tomorrow.

In compliance with the MDA, the ArcelorMittal Liberia School System (AMSS) came into existence in 2005, taking over four schools from the LAMCO Area School System (LASS) at the end of the civil crisis.

The school system inherited 150 students from the LASS, and in 2015 had an enrollment figure of 1,320.

ArcelorMittal Liberia School System enrollment in 2015, by school School Dependents Non Dependents Grand Total

Male Female Total Male Female Total Male Female Total

AMHS 69 46 115 206 125 331 275 171 446

Area B 66 63 129 130 171 301 196 234 430

Area C 37 29 66 117 123 240 154 152 306

AMNS 46 92 138 46 92 138

172 138 310 499 511 1010 671 649 1320

Four masters degree graduates that returned to Liberia after completing studies abroad through the ArcelorMittal Advanced Studies Scholarship Program.

Students at the ArcelorMittal High School, one of four schools run by the company.


The combined curriculum comprises 14 subjects, including mathematics, general science, biology, chemistry, and physics and encourages students to think outside the box.

“Our motto is ‘transforming the youth for tomorrow,’ therefore preparing our kids for the future is a top priority,” said Peter Zuagar, superintendent of the ArcelorMittal Liberia School System.

Although the ArcelorMittal Liberia School System has been in existence for less than a decade, its achievement as one of Liberia’s top scorers on the National Exam, WAEC, highlights the company’s commitment to education and the transformation of Liberian youth into productive citizens.

As per the MDA, ArcelorMittal Liberia established an advanced academic scholarship program so that Liberians could pursue graduate degrees in Engineering, Natural Sciences, Geology, Procurement, and Medicine at universities in Ghana, Kenya, Nairobi, South Africa, Australia and China. In 2015, 12 out of 27 students on the program graduated with Masters Degrees and returned to Liberia to join the Liberian workforce. Furthermore, in 2015, the Company continued its commitment of US$50,000 in science-based scholarships for the mining and geology departments at the University of Liberia. This funding covers capacity-building, plus financial and technical assistance to students majoring in mining engineering and geology, who are in good academic standing.

If one were to Google the name Clement Tweh, almost every entry that pops up links his name to the first nationwide chimpanzee survey in Liberia or conservation research in Liberia.

Clement is an up and coming Liberian conservationist, whose work on Liberian endangered chimpanzee species has resulted in several scholarly presentations and publications. In August 2015 in Montpellier, France, Clement had the opportunity to present his most recent work, a poster presentation at the 27th International Congress for Conservation Biology (ICCB) and the fourth European Congress for Conservation Biology (ECCB).

Clement attended the meeting, with sponsorship from ArcelorMittal Liberia, and did a poster presentation entitled “Evaluating conservation needs in a West African biodiversity hotspot and an Ebola epicenter?

The presentation was rooted in his claim that although Liberia received widespread international coverage during the Ebola crisis, it has not received the international attention it deserves as a “regional conservation priority.” The grounds for this claim stemmed from his continued work in underscoring the threats to the endangered chimpanzee population in Liberia and his attempts to assess the socio-economic impact of Ebola and its effects on the “human livelihoods and society.” Additionally, the ArcelorMittal Liberia Biodiversity Conservation Program (BCP) currently provides full scholarships to 40 students attending the Nimba County Community College. Two Liberians studied in Germany as recipients of support from the Program, with two others currently receiving research support overseas. Conservation International Liberia in partnership with ArcelorMittal Liberia recruited

12 out of 27 ArcelorMittal Liberia Advanced Studies Scholarship recipients received post graduate degrees since 2015.

ArcelorMittal sponsored conservationist Clement Tweh’s work on Liberian endangered chimpanzees have received much acclaim.


and trained 71 persons in Nimba County in various conservation activities. There was also a re-launch of the Nimba Conservation Forum at the Nimba County Community College (NCCC) in May, to promote awareness among students and the public.

Earlier in the year, ArcelorMittal Liberia hosted two Liberian students from the Ibn Tofail University in the Kingdom of Morocco who completed six weeks of internship with the technical department.

The students, Alieu V. Sheriff and J. Negatus Wright, are beneficiaries of the bilateral cooperation scholarship between the Liberian and Moroccan governments.

In an effort to build capacity at the Nimba County Community College, ArcelorMittal Liberia aided the call from the school to assist with the shortage of geosciences instructors for the geology and mining departments. The company provided four employees from the technical services department who

teach courses ranging from mine planning and design to principles of geochemistry.

As the company transforms Liberia’s mining industry, it acknowledges the need to educate Liberian students well enough for them to assume control of this huge revenue earning industry. It is a commitment that the company is dedicated to, always-developing creative ways to improve the lives of Liberian youths for tomorrow through education.

Our contribution to society measured, shared and valued

Outcome 10

As one of Liberia’s biggest foreign direct investors, our business has significant impact on the Liberian economy, environment, communities, and society. In 2006, the Mineral Development Agreement signed between ArcelorMittal and the Liberian government defined goals, commitments and expectations that guide and guard both parties including stakeholder groups.

This Report, which documents our performance against the MDA and other aspects, is a public document distributed through various media channels and directly to our stakeholders.

ArcelorMittal Liberia must also operate in line with the global standards, principles and targets set

Providing safe drinking water through the rehabilitation and construction of hand pumps and water systems in communities continues to be a priority of ArcelorMittal Liberia.


forth by the ArcelorMittal group. In 2015, we began benchmarking our operation against the 10 Sustainable Development (SD) outcomes which form the basis of this report.

How we have performed against these outcomes is measured in this report, and shared with you our shareholders, stakeholders, the ArcelorMittal group, and industry. Our employees whose daily activities

ensure the success of our operation and achievement of these 10 sustainable development outcomes are our most important asset; therefore, it is important that they understand the company’s strategies and how their roles impact these outcomes. This report is also directly distributed to them..

ArcelorMittal Liberia’s investment in Liberia is a welcomed one, and

the relationship between the Government of Liberia and the company is exemplary.

Our commitment to Liberia remains as firm as it was when we signed on as the country’s development partner in 2005. It is upon this relationship that we believe much greater feats can be conquered tomorrow.

2015 MDA commitments measured, shared and valued

Category MDA Commitment/Expectation How we measure up in 2015

Mining/Geology

Programs

US$ 50,000 annually to University of Liberia Mining and Geology for capacity-building, financial and technical assistance to students in good academic standing.

$50,000 paid in 2015….$300,000 paid year-to-date

Skills & Training of Liberians

Establish/operate vocational and advanced training programs in Liberia

5 locomotive drivers certificated in 2015 along with ongoing technical training at Port, Rail and Mine.

US$200,000 annual scholarships for Liberians to pursue advanced studies abroad.

Paid - 29 students currently studying abroad. Nine graduates in 2015.

Education

Free primary/secondary education for dependents of employees and government officials assigned in Concession in connection with Operations.

26 students have been awarded the scholarships. Up to reporting 12 students have graduated with 14 students currently studying abroad.

If substantial Production in area, it shall pay the costs of such education in in which facilities are inadequate to conduct such education, at its option, provide facilities reasonably adequate for such purpose.

Up to 5 dependents not enrolled in AMSS receive annual tuiton reimbursements

Security Force

Directly or under contract with other persons, establish and maintain its own security force for the purpose of maintaining law, order and security,

In 2015, LPGS and SEGAL, two Liberian owned security firms, were contracted for security at all areas of operation


Category MDA Commitment/Expectation How we measure up in 2015

Safety

Construct, maintain and operate safety devices and equipment and practice safety procedures and precautions (including regular safety training instruction for its employees)

Daily safety toolbox talks, annual health & safety week, Courageous Leadership training and other actions are documented in Outcome 1.

Notify GOVERNMENT of death or serious injury (injured person to lose six or more working days).

No fatalities or serious injuries with over six or more days were reported in 2015.

Prevent the spread of contagious, life-threatening diseases and other public health hazards.

ArcelorMittal Liberia won global awards for its handling of Ebola, the world's most deadly disease.

Healthcare

Construct, maintain and operate health facilities in the Concession Area, with modern health devices and equipment and shall practice modern health procedures and precautions.

Hospital system operated four health facilities with modern standards and treating over 15,000 patients in 2015. (Outcome 1).

Free medical treatment, care and attention at acceptable standards to all employees and officials working in connection with the Operations, spouses and immediate dependents.

All employees received free medical care and drugs at all facilities in 2015.

Whenever the CONCESSIONAIRE employs 100 or more persons at any permanent work site within the Production Area, it shall maintain there a dispensary or hospital headed by a resident medical doctor.

All sites with over 100 persons have medical facilities.

Community

Operations carried out consistent with economic and social viability. Consult with GOVERNMENT and communities to establish plans and programs and in good faith cooperate with the GOVERNMENT with regard to its efforts concerning the realization of such plans and programs.

We maintain excellent relationships with the county governments and regularly engaged with them in 2015. Results in Outcome 8 are directly related to community requests honored by the Company.

Provide annual social contribution of US$3 million.

$3 Million provided with $27 million dollars to date.

Environmental Audit and

Assessment

Conduct periodic environmental audit and assessment, consistent with Environmental Protection and Management Law of Liberia.

In February of 2015, a team from the EPA conducted a successful comprehensive environmental audit and assessment of the ArcelorMittal operation.

Mitigate and/or restore environment as much as possible to its original and natural state within an agreed timescale and take preventive measures to avoid further damage to the environment.

Outcome 5 outlines revegetation restoration works and check dams construction towards mitigating run-offs from the mine.


Transparent good governance


2015 was a year of tough decisions. On the heel of 2014, headlined by the Ebola Virus Disease, was the global downturn of iron ore price, leading to global speculations about the tenacity of Liberia’s investors. ArcelorMittal Liberia continued to echo to shareholders, the Liberian government, the public and workforce its unwavering commitment to Liberia and took decisions to ensure the sustainability, competitiveness, and viability of the operation. Governing the decision-making processes were accountability, transparency, rule of law, responsiveness, equitability, inclusion, effectiveness, efficiency and full participation. One decision widely reported in both local and international media was the decision to reduce the workforce in 2015, one of many measures taken towards reducing costs against new iron ore lows. To ensure transparency, on March 3, 2015, the company wrote a letter to its employees and held a press conference announcing its intention to reduce the workforce by about 20%, impacting possibly 270 jobs.

Prior to that announcement, the company sought full participation from key stakeholders, spending numerous hours in discussions with its corporate office, senior and relevant Liberian government officials, ArcelorMittal Liberia senior

management, and the Board for their understanding and guidance.

Prior to a June 6th announcement to reduce the workforce by 198, instead of the previously announced 270, several meetings and consultations were held for inclusion and adherence to the rule of law.

A one-month consultation with the ArcelorMittal Liberia Workers Union and National Unions as stipulated in the Collective Bargaining agreement signed between the company and the Unions was held. Various joint meetings took place with participation from the Ministries of Labor; Justice; Lands, Mines and Energy; Liberia Revenue Authority; Unions; members of the House of Representatives; and ArcelorMittal Management.

Employees expressed fears and concerns over news of the potential workforce reduction. Management immediately responded by providing psychosocial counseling training to a selected group of employees who were then entrusted with the task of counseling their peers to reduce these fears; the CEO conducted road shows where he spoke directly to staff across all sites; and regular department meetings were encouraged to discuss this issue.

It was important that all employees received equitable treatment

throughout this process. Selection of the positions to be made redundant involved full management participation, avoiding unilateral decisions based on personal feelings.

A caring process of separation was used, giving employees ample time to pack, explaining repeatedly to the entire workforce that positions affected by this measure were not impacted by the employees’ performances, but rather ‘essential’ vs ‘non-essential’ positions.

These engagements provided excellent solutions towards saving as many jobs as possible, and ArcelorMittal Liberia strengthened its bond through transparency and good governance with each stakeholder group.

Our most crucial effort towards good governance and transparency has been the completion of a new two-year sustainability plan for ArcelorMittal Liberia operations. The plan is scheduled for a January 2016 release and implementation.

In additon to being alinged to the sustainable developmment framework of the ArcelorMittal Group, the plan provides for the estalbishment of the Sustainable Development Committee and its technical arm, the Sustainability Steering Group.

Our most crucial effort towards good governance and transparency has been the completion of a new two-year sustainability plan for ArcelorMittal Liberia operations.


About the Sustainable Development Committee

The ArcelorMittal new corporate responsibility and sustainable development framework requires that appropriate governance and policy structures should be in place, at the country level, to assess risks and trends, plans to respond to them, and advise management on policies and strategies.

One such structureis the Sustainable Development Committee (SDC). Each ArcelorMittal country operation is required toestablish an SDC to provide the appropriate management leadership to guide and manage theframework.The Liberia SDC is established to set the objectives and steer the direction for good corporategovernance and sustainability at ArcelorMittal Liberia.

Functions of the SDCAssess short-term immediate risks and stakeholder expectations as well as long-term trends, and develop strategies to improve the business.Advise on issues with cross-functional relevance, and encourage collaborative, not ‘silos,’ handling of these issues.• Approve and regularly review

plans and strategies to address the key social and environmental issues that affect the Liberia operations.

• Mobilize resources for sustainable development in Liberia.

• Include outcomes and decisions of the Committee in the annual business, capital expenditure, and community investment plans, and policies and procedures.

• Meet once every quarter, and when necessary.

ManagementThe SDC is a useful strategic management tool where everyone participates in building a strong corporate responsibility governance culture. It places sustainability at the top rung of decision-makingin ArcelorMittal Liberia.

The SDC is comprised of seven members, led by the Chief Executive Officer of ArcelorMittal Liberia• CEO Liberia (chairman)• Country Manager• Chief Financial Officer• Communications Manager• Corporate Responsibility

(secretary)• General Manager - CR

ArcelorMittal London (advisor)• General Manager -

Government Relations, Corporate Responsibility and Communication,

• ArcelorMittal Mining, London (advisor). About the Sustainability Steering Group

• The Sustainability Steering Group (SSG) was formed to provide technical support to the SDC, following the March 2015 establishment of the SDC.

The SSG key functions are:• To provide interdepartmental

and cross-functional analysis of current and emerging sustainability issues and advise the SDC on strategies to address them.

• With the advice of the SDC, formulate, draft and prepare strategies and plans for the implementation of the ArcelorMittal sustainable development framework in Liberia.

Monitor and report on the 10 Sustainable Development Outcomes to the SDC.

Membership of the SSG consists of heads of departments and an alternate from community liaison, corporate responsibility, education, environment, health, human resources and safety.

This first Sustainability Report lays the foundation upon which future reports will be built. But, most importantly, is the building of an organization that will continue to thrive in partnership with the government of Liberia and our stakeholders towards a sustainable future for Liberia and this operation.

43

Published by Unchain Africa for ArcelorMittal Liberia

Published in October, 2016To receive a printed copy of the sustainability highlights 2015 booklet, please contact:

ArcelorMittal LiberiaArcelorMittal Liberia (Mining)ArcelorMittal Liberia Corporate Head OfficeBuchanan, Grand Bassa CountyMonrovia, Liberia

We welcome your feedback on this report. Please send it to [email protected]

sustainability report 2015 arcelormittal liberia

Documents