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Corporate ResponsibilityReport 2012

Transforming tomorrow today

“ArcelorMittal Liberia is excited and honored to be part of Liberia's story of success. In addition to ourresponsibilities to our employees, communities and the environment, our position as one of the largest private-sector foreign investors in post-war Liberia offers real opportunities to make a meaningful contribution to thegrowing prosperity of the country. It is important that we take an active leadership role in this regard and standas an example of good corporate citizenship.

This is why so many of our corporate responsibility programs go far beyond compliance in delivering value tocommunity members, protecting the environment, developing and safeguarding our people and adhering to thehighest ethical and governance standards. “

Antonio Carlos Maria, Chief Executive Officer, ArcelorMittal Liberia

2 | CORPORATE RESPONSIBILITY


Annual contribution to CountySocial Development Fund¹

2012 2011

Iron ore shipped

Number of employees

Number of contractors

Training investment

People recruited

Total payments togovernment of Liberia

Patients treated at Yekepaand Buchanan hospitals

Local residents engaged in month-long rail safety awareness campaign

US$3m US$3m

2.1 Mmt

1 533

US$600 000

178 133

US$6.5mSee note 2

21 884

20 000

521

Key facts and figures 2012

¹ To date ArcelorMittal Liberia has paid US$22m into the County Social Development Fund.We continue to support efforts of all stakeholders to strengthen the governance of theFund and provide much needed community development.

²

³

Based on data covering July 1, 2010 to June 30, 2011, as published in the 4th LEITIPayment Reconciliation Report 2011.

At the time of this document's publication the 5th LEITI Report, covering fiscal year July2011 to June 2012, has not been published. Please see www.leiti.org.lr/ for furtherinformation.

311 391 Mmt

20 000

732

See note 3


In July 2012, a Memorandum of Understanding was signed between ArcelorMittal Liberia and the Forestry DevelopmentAuthority for joint support and management of the East Nimba Nature Reserve. Under this MOU the ArcelorMittal LiberiaBiodiversity Conservation Program provided this office building to the Gba CFMB, in addition to equipment, forest guarduniforms and field expenses for administration.

This is ArcelorMittal Liberia's second corporate responsibility (CR) report,and builds on the foundation of the first report, which was published in2012. The reporting period runs from 1 January to 31 December 2012, andthe report covers all ArcelorMittal Liberia's operations including the mines,railroad, port and administrative offices.

This report is intended to provide our stakeholders with a balanced andtransparent view of our progress in meeting our corporate responsibilitycommitments in Liberia. In line with ArcelorMittal's global corporateresponsibility approach, it has been structured around the four key themesof Investing in Our People, Enriching Our Communities, Making Steel AndMining More Sustainable and Transparent Governance. These cover ourhealth and safety, environmental, human resource, community investment,stakeholder engagement and corporate governance responsibilities.

As a company, we are committed to operating sustainably, and as you willread, we have established diverse and clear objectives to ensure that wehonor this commitment.

About this report


Table of contentsKey facts and figures

CEO message

About ArcelorMittal Liberia

Timeline

3

11-12

15

18

20-21

2324-2526-2729

3738-3939

434546-47

515253

354-5557

5959

62646566676768-69

Our four pillars 9

17

1958

About ArcelorMittal

Alignment to our values School enrolment figuresOur operations

Ensuring the safety of our peopleBuilding a safety cultureProviding adequate healthcareCreating sustainable employmentDeveloping skills, furthering education 31Engaging with employees 33

Identifying our potential impactManaging environmental risksManaging complianceProtecting biodiversity 41Forest conservation 42Agricultural intensificationMining sustainablyCase studies

Engaging with community stakeholdersCommunity health and safetyPartnership to fight malariaLimbs for Liberia 5Driving community safety awarenessEducating the future

Sponsoring the education of individual childrenCounty social development fundResettlement and infrastructure development 60Employee volunteering 61

Code of business conductBuilding trust through open engagementAddressing community grievancesZero tolerance approach to corruptionUpholding human rightsVoluntary principles on security and human rightsSourcing responsibly

Investing in our people 22

Making mining more sustainable 34-35

Enriching our communities 49

Transparent governance 62-63



Employee at the iron ore crushing plant at Tokadeh. By 2015, the Company will move from thedirect ship ore phase to processing and full concentration of the ore, which will require investmentin a Concentrator Plant and additional employment.

Our corporate responsibility pillars

01 Investing in our peopleOur people are at the heart of our business. We need their ideas and rely on their hard work and commitment for the success of the business. We treatthem with dignity and respect, invest in their development, and aim to provide them with a safe and healthy working environment.

02 Enriching our communitiesWe play an important role in all the communities where we operate. We want to contribute to the development of strong and sustainable localcommunities where we work. We do this by being sensitive to local cultures, issues and priorities, by engaging with our communities in an open andtransparent way, and by working in partnership with local organisations.

03 Making mining more sustainableWe are working on technologies that will redefine the mining and steelmaking process, pioneering more sustainable practices and contributing positivelyto the challenge of climate change. We work in partnership with our customers and suppliers to help them achieve their environmental goals throughinnovation in steel products.

04 Transparent governanceWe believe in open and visible governance, grounded in business reality. We take steps to understand the true impact of our operations, predict thefuture consequences, and manage risks consistently across our operations. We endeavour to engage meaningfully with key stakeholders and respond in atransparent manner.



CEO, Antonio Car los Mar ia and the mine management team in Tokadeh.

I am delighted to present you with thesecond Corporate Responsibility reportabout the ways in which we atArcelorMittal Liberia are meeting ourresponsibilities in the areas of safety,employee development, environment,community investment and corporategovernance.

We take these responsibilities extremely seriously.Meeting them secures our ongoing social andlegislative license to operate, and has a directimpact on the people we employ, the communitiesin which we operate, Liberia's natural heritage andthe future sustainability of the country in which allcitizens are stakeholders.

The year under review was an important one forLiberia. In her address to the 67th session of theUnited Nations General Assembly, President EllenJohnson-Sirleaf said she could state withconviction that the country has turned a corner.

Her words are worth quoting in full. “We are nolonger the country our citizens fled, ourinternational partners pitied and our neighborsfeared. Our stabilization efforts, over the past sixyears, have resulted in average annual growth ofover 6 percent; revenue has more than quintupled;direct foreign investment of over US$16bnmobilized; an expanded fiscal space andunprecedented debt cancellation. Moreimportantly, we have earned our rightful place as acountry on an irreversible path of sustained peace,growth and development," she said.

ArcelorMittal Liberia is excited and honored to bepart of Liberia's story of success. In addition to ourresponsibilities to our employees, communitiesand the environment, our position as one of thelargest private-sector foreign investors in post-war Liberia offers real opportunities to make ameaningful contribution to the growing prosperityof the country.

It is important that we take an active leadershiprole in this regard and stand as an example of goodcorporate citizenship. This is why so many of ourcorporate responsibility programs go far beyond

compliance in delivering value to communitymembers, protecting the environment, developingand safeguarding our people and adhering to thehighest ethical and governance standards.

The year 2012 was also a momentous one for ourcompany. The ArcelorMittal board approved plansfor a second phase of our mining operations,which will increase the annual capacity of our ironore mine from four million tons a year to 15 milliontons a year in 2015. This increase in capacitycomes with plans to invest in an iron oreconcentrator, expand the Buchanan port facilitiesand increase our utilization of rail capacity.

Expanding our operation has mutual benefits forour company and the country. During the year, weannounced an agreement with the government ofLiberia to build a 70-km road connecting thetowns of Ganta and Yekepa. We will be providingthe US$40m needed to build the road, which isexpected to be completed in early 2016. The roadwill significantly cut the journey time between thetwo towns and allow local farmers and businessesto more easily move their goods to the regionalmarket in Ganta.

CEO message

Dear stakeholders


In the aftermath of the civil war, unemploymentand lack of skills are among the key issuesconcerning our local communities. Our expansionplans for phase two will further boost employmentopportunities for local Liberians and during theyear we recruited 136 people and created 22 newjobs. We also continued to develop our existingemployees, investing US$600,000 in training anddevelopment during the year.

On the education front, we finished building thenew, modern primary school in Wamah Town,Bong County, which provides education to 247local children, and launched our Advanced StudiesScholarship Program, funding the post-graduateinternational education of five bright youngLiberians.

The health and safety of our employees andcommunity members is paramount and weembarked on a number of important health andsafety projects during the year.

Continuing our Journey to Zero campaign onhealth and safety, our lost time injury frequencyrate fell for the fourth consecutive year, but I amsaddened to report that we had one fatality duringthe year. This is one too many. The comprehensivesteps we are taking to become a place of zeroaccidents and zero fatalities are laid out in thisreport.

We ran a month-long community safetyawareness campaign to ensure communitymembers are aware of the risks associated withthe railroad, now operating after more than 20years. Our Limbs for Liberia program, whichprovides amputees with state-of-the-artprosthetic devices, is a groundbreaking example ofwhat can be achieved through collaborativepublic-private partnership and was a flagshipcommunity healthcare project undertaken duringthe year.

Preserving Liberia's rich and unique naturalheritage is a key component of our corporateresponsibility program, particularly in light of thesensitive environmental areas where ourconcessions are located. During the year, wesigned four landmark agreements with forestmanagement authorities to assist in the movetowards sustainable management and protectionof the country's most vulnerable forestecosystems.

We are also working with ConservationInternational to pilot Conservation Agreements insix communities around the East Nimba NatureReserve. This agreement model will makeconservation a viable choice for local resourceusers by providing benefits to communities inexchange for effective conservation of highpriority areas and species.

There were a number of important corporategovernance developments during the year. Weofficially launched the ArcelorMittal LiberiaStakeholder Engagement program in May. Thisincludes a formal stakeholder engagementstrategy, implementation plan and comprehensivegrievance procedure and represents a further stepin our journey towards robust, transparent, two-way engagement with important stakeholdergroups.

From a personal perspective, 2012 was animportant year as I was privileged to be handedthe reins as CEO. I would like to take thisopportunity to thank my colleagues, employees,our stakeholder communities and partners ingovernment and civil society for their support andenthusiasm in working together with ArcelorMittalLiberia to further our mutual goal of adding valueto the country, its people and its economy.

Antonio Carlos MariaChief Executive OfficerArcelorMittal Liberia


Education is at the core of Liberia's success story tomorrow and in keeping withArcelorMittal's brand promise of "transforming tomorrow," we continued to shape youngminds through the operation of our four schools in Yekepa, scholarships, and the buildingof new schools in communities.



Loading iron ore at the Port of Buchanan

About ArcelorMittal Liberia

Some history

ArcelorMittal was one of the first multi-national companies and the singlelargest private investor in Liberia following a period of major instabilitywhich started in December 1989 and ended in 2003. The conflictdevastated Liberia - once a robust nation - with a thriving natural resourceexport industry.

As it started on its journey towards peace and stability, it became clear thatLiberia would need external investment and the commitment of foreigncompanies to help it back on the road to economic prosperity. The countryis rich in natural resources but it lacked the infrastructure and local skillsbase to extract these minerals.

There emerged an opportunity for Liberia to forge mutually beneficialpartnerships with foreign companies that could help it exploit its naturalresources for the benefit of the Liberian economy and its people, whiledelivering value to those companies and their shareholders. From thebeginning, however, it was clear that such relationships would need to befounded on the highest standards of corporate responsibility and goodgovernance.


ArcelorMittal

ArcelorMittal Liberia is part of the global ArcelorMittal group, theworld's leading steel producer and the market leader in sectorssuch as construction, domestic appliances, packaging andautomotive. The global group has mines and industrial sites in over20 countries and a presence in more than 60 countries across boththe developed and developing worlds.

In 2005, ArcelorMittal Liberia signed the first Mineral DevelopmentAgreement (MDA) to allow us to begin mining iron ore in the Yekepa andBuchanan concessions, which was then renegotiated and amended in 2006.

The MDA carries stringent conditions regarding sustainable development andeconomic, social and environmental investment. Its aim is to ensure that, whileforeign companies are able to generate a profit from their investment in theextraction of Liberia's resources, the country and its citizens benefit as well.

Among other things, it stipulates that we contribute US$ 3m a year to thecounty social development fund for Nimba, Bong and Grand Bassa Counties.This money, which over the 25-year expected life-of-mine will totalUS$75m, will be used to drive community development projects that willuplift and improve the lives of local people.

We are also required to establish and maintain medical and education facilitiesin our areas of operation, to serve our employees, their families and thebroader community, and to prioritize the employment and development oflocal Liberians.


Signing the mineral development agreement

Our operationsOur work in Liberia represented the first greenfield mining project undertaken by the ArcelorMittal group that was established in 2006following the merger of Arcelor and Mittal Steel. We mine iron ore in Yekepa, Nimba County and transport the ore to the iron ore quay atBuchanan, Grand Bassa County. Our offices are located in Yekepa (Nimba County), Green Hill Quarry (Bong County), Buchanan (GrandBassa County) and Monrovia (Montserrado County).

Our Liberian operation isdivided into two phases:

Phase 1- 2011 - 2015:

During this phase, ore will continue to be minedand shipped to our European steel plants or to theopen market in Asia.

Phase 2 - 2015 - ±2030:

This phase, approved by the ArcelorMittal boardin the year under review, will see the capacity ofour iron ore mine increase to 15 million tons ayear. We will invest in a new fixed ship loader atthe Buchanan port and construct a concentratorat the Yekepa concession to produce iron ore.


Alignment to our values

01 Supportingsocioeconomic regeneration and growth in our local communities and throughout Liberia.

02 Developingand strengthening an internal corporate responsibility governance and operational structure.

03 Buildingand strengthening partnerships with relevant industry stakeholders through proactive engagement.

04 Internalizingbest practices on the environment, workplace, health, safety, and good corporate governance.


Our goal is to be the most trusted company in Liberia, and the corporate responsibility pillars lay the foundation for good businesspractice and positive socioeconomic transformation of communities. ArcelorMittal Liberia has laid out key objectives to support thismission and move our corporate responsibility vision forward. These objectives are closely aligned to the MDA in both letter and spirit.


Looking back at 2012 our first major accomplishment was the announcement of the reaching of our first one million tons of iron ore.Next was the signing of the Collective Bargaining Agreement (CBA), a major milestone for employees and management relations. Inbetween, there were great moments and challenges, with the biggest of all being heavy rains.

2012 in retrospect

March 19 - company announcesshipment of the one millionth ton ofDSO (direct shipped ore) fromLiberia.

January 21 - First post-warhotel in Yekepa, the AlvinoHotel, opens within theArcelorMittal concessionarea.

January 2012

February 27 - one millionth ton of direct shipped ore(DSO) transported from Tokadeh to Buchanan portby rail, exceeding the company's rail tonnage targetin February.

June - Theconstruction of ashed to cover theiron ore stockpile,hailed as anotherfirst for Liberia.

July 2 – ArcelorMittal Liberia signsthree memorandums ofunderstanding on forest protectionmanagement and assistance tosupport the Forestry DevelopmentAuthority.

The company launches the first phase of Limbs for Liberia, a programthat supplied over 400 new prosthetic limbs to amputees acrossLiberia.

The 26 Courageous Leadership training begins in Liberia, as part of amajor health and safety program within ArcelorMittal mining.

th

Thirty senior managers gathered to discuss and develop the prioritiesfor Liberia at the ‘ conference.Liberia’s renowned music artist and Cultural Ambassador, Juli Endee,performed during the opening gala held at Palm Springs Resort.

Shaping Our Destiny Vision 2020'

June 21 -

June 25 -

June 29 -

June 2012July 2012

February 2012March 2012


The year in review

April 2 - ArcelorMittal launches a one-month road caravan to raiseawareness of road and rail safety fromNimba, Bong to Grand Bassa County.

May 1 - ArcelorMittal Liberia holds theofficial dedication of the Warmah TownPublic School in Bong County – one ofour company's social mitigationprojects.

August 11 – Companyhosts Security SectorConference in Yekepa,Nimba County

First group of biodiversityscholarships awarded

October 15 – 19,ArcelorMittal hosts the firstHealth Awareness Program,a week of activities related tohealth and safety.

24 November - Sea Turtleand Mangrove ProtectionAwareness Day organizedin collaboration with

PROSPER,ArcelorMittal Liberia, andConservation International.

USAgency for Inter-nationalDevelopment


August 14 -

August 30 -

Company launchesfirst Advanced StudiesScholarship program

Collective BargainingAgreement signed

April 2012

May 2012

Antonio Carlos Maria

August 2012

September 2012

October 2012

November 2012

Port employees heading home at the end of a work day. Our number one priority is ouremployees' safety, and our mission is that each day every employee returns home safelyto their family.


Investing in our people

Our first priority is the safety and health of those who work for us and withus. In meeting this responsibility, we are guided by the ArcelorMittal grouphealth and safety policy and the goals of our Journey to Zero program, whichseeks to eliminate injuries and fatalities.

The key safety risks for employees associated with our operationsarise from operating mobile equipment and the manual handlingof ore. We track our safety performance by measuring lost timeinjuries (LTI) and fatalities, combining the statistics for employeesand contractors.

We made pleasing progress in meeting our Journey to Zero safety goal ofzero lost time injuries. However the tragic loss of a contractor employeeduring 2012 indicated that there is more work to be done.

Following the incident, wide ranging checks were carried out, our riskassessment procedures deepened, and a programme of new stepshave been planned, as the following pages describe.

Ensuring the safety of our people



Employees and contractors play a pivotal role in theachievement of our safety objectives – they are heldaccountable for safety performance and empowered toimplement safe working procedures through ongoing safetytraining.

Safety training includes training at induction, on-the-job training,employability skills and technical skills. In total, 89,168 hours were spent ontraining during the year.

In the year ahead, we will maintain a rigorous focus on safety, bothinternally and externally. We plan to implement the first five of the tenArcelorMittal Group Fatality Prevention Standards (FPS) , which have beendeveloped for ArcelorMittal operations worldwide. They include:

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�

�

�

�

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Isolation and lockout procedures and practicesSafely working in confined spaces and gas hazardous areasSafely working at heightsRail safetySafely operating vehicles on our sites and driving with therequisite careSafely operating cranes and lifting equipmentConducting shop floor auditsManaging our contractors to execute their tasks safelyConducting incident investigations so that corrective action may betaken to limit repeating similar incidentsMaintaining a state of preparedness to deal with emergencysituations

Building a safety culture


Once implemented, the extent to which the FPSs are entrenchedin the operation will be externally audited by a third partycontractor. Our goal is to achieve OHSAS 18001 accreditation,the world's most recognized framework for occupational healthand safety management systems. However, the pre-requisite isthe implementation of the ArcelorMittal fatality preventionstandards, which we are set to achieve by mid-2014. Once thistarget has been reached, we will implement OHSAS 18001, whichis expected to take a further 18 months.

In the year ahead, we plan to develop a safety risk register basedon a full risk assessment to gain a more comprehensiveunderstanding of the key safety risks facing our people. We willcontinue to roll out our established and ongoing safety trainingprogram, paying particular attention to ensuring that contractorsare fully aligned with the ArcelorMittal Liberia safety standards.A shift system will also be implemented for safety staff in the yearahead, to ensure they are always available and visible.

LTIFR is the number ofinjuries that have resultedin an employee orcontractor being awayfrom work for at least oneday after the day theaccident occurred, permillion hours worked.

1.57

0.66

0.18 0.07

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

FY2009 FY2010 FY2011 FY2012

LTIFR

Yekepa hospital Buchanan hospitalTotal patients in 2012

Local community members 8 899 5 680

Employees 4 381 2 924

Total staff 39* 39*

Medical outreach visits 27*** 16****

Number of patients treatedduring medical outreach

2807 619

3,426 Community members have been treated during medicaloutreach programs

Total patients 13 280 8 604

Number of beds 62 35

* Including one internationally accredited doctor and two paramedics** Including one internationally accredited doctor and one paramedic*** Conducted twice a week between July and November**** Conducted twice a week between June and September


Providing adequate healthcare

Access to healthcare is a fundamental human right, but crumblinginfrastructure has left most areas in Liberia without adequatehealthcare facilities.

Without such facilities our employees, their families and the broader communityface illness and death from many preventable diseases. In line with ourcommitment to ensuring the health of employees and contractors, both on andoff the job, we believe that it is our corporate responsibility to providehealthcare facilities where none exist. It is also a business imperative to have ahealthy and productive workforce.

Internally our employees joined more than 112,000 colleagues at sites acrossthe world to take part in the global ArcelorMittal annual health awareness week,which in 2012 focused on physical activity, stress and nutrition. While health isan ongoing priority throughout the year, this campaign gives focus tosupporting staff in their efforts to live healthier lifestyles.

We have made significant investment in the development of health facilities inour areas of operation. These include upgrading running hospitals in Buchananand Yekepa, which have 62 and 35 beds, respectively, and a medical clinic inGreen Hill Quarry, Bong County.

Through these facilities, we provide free healthcare to employees and theirdependents, and subsidized healthcare to local community members. During theyear, ArcelorMittal's Yekepa and Buchanan hospitals treated 21,884 patients.


Liberians make up the majority of our workforce. In 2012, Liberians held 91% of all skilledpositions in the company.


As one of the largest private-sector foreign investors in the country,ArcelorMittal Liberia is an important provider of jobs. This position comeswith a unique and immense responsibility, particularly when one considersthe high rate of unemployment in the country following a 14-year civil war.It also offers opportunities to make a difference in the lives of our ownemployees and to those of people living in the broader communities inwhich we operate.

While our ability to offer direct employment is necessarily limited, we arepromoting the creation of more indirect jobs through our supply chain. Forthis reason, our commitment to employing local labor extends tocontractors.

These jobs make a significant contribution to the country's economicdevelopment and uplifting the lives of individuals. Because we believe ininvesting in the ongoing education and training of employees and contractors,they also provide us with the opportunity to raise the skills level of the localpopulation. This has long-term benefits for the country and its citizens.

During the year we created 178 new jobs, increasing ourworkforce from 554 to 732. Liberian nationals now make up 50%of our senior management, up from 33% in 2011, and 89% of ouremployees overall. At 31 December 2012, we employed 1,533contractors.

Creating sustainable employment

Employment categories

Senior management

Professional, administrative,technical & management

Skilled

Unskilled

Total

MDAbenchmark

2012

25%

75%

80%

100%

Number ofemployees

2011

6

207

250

91

554

Number ofemployees

2012

6

242

392

92

732

Number ofLiberians

2011

2

183

235

91

511

Number ofLiberians

2012

3

201

355

92

651

% of Liberiansemployed

2011

33%

88%

94%

100%

92%

% of Liberiansemployed

2012

50%

83%

91%

100%

89%


The company has invested in training Liberian environmentalists who operate the treenursery at Yekepa, where indigenous species are nurtured and grown using seedscollected from the rainforest, and then replanted in the mine, gradually restoring the forest.



Developing skills, furthering education

In order to realize our ambitious growthplans, ArcelorMittal Liberia needs employeeswho are equipped with the specialist skillsand knowledge to implement what isrequired. In line with our commitment toemploying Liberian nationals, we also wantto ensure that existing employees areadequately skilled to fill more senior roles inthe company when these become available,as every position is filled on merit.

For these reasons, we invest heavily intraining, education and shadowing programsfor employees at all levels and across alldisciplines in the company.

Training is aligned to the needs of thebusiness and aims to provide employeeswith technical and vocational skills as well asprofessional and leadership development,while succession planning and shadowingsupport the goals of increasing theproportion of Liberians in our workforce.

During 2013, 40 employees participated inleadership training, 51 managers took partin training to build team skills and cross-functional capabilities and 26 supervisorsunderwent frontline management training.

A total of 278 people took part ininduction training, which includes humanrights, health and safety and anti-corruption training. Our total traininginvestment for the year amounted toUS$600,000.

We introduced psychometric testingduring the year and rolled out the Vienna(Dover) competency measurementsystem at our Buchanan and Yekepaoperations. This risk detection andaccident reduction tool will help toenhance operator safety, performanceand productivity by identifying individualtraining needs, and when used inconjunction with interviews andpsychometric tests will be a usefuladdition to the selection and recruitmentprocess.

Training needs are identifiedformally though performanceappraisals, personal developmentplans and global executivedevelopment planning, andinformally through on-the-jobobservation.


Engaging with employees

“Management responded to all the issues raised by ouremployees during the year. No formal grievances were lodged.”

Some 95% of our employees are represented by the new Collective Bargaining Agreement, signed inAugust 2012 with the United Workers' Union of Liberia. This agreement was the first of its kind inLiberia's history and replaced the interim agreement and established a formal structure to regulate allaspects of our relationship with our employees. It followed extensive negotiations betweenArcelorMittal management and Union representatives.

In line with the agreement, we backdated salary increases to April 2012; enhanced employeebenefits and introduced comprehensive death and disability insurance coverage for all employees;introduced a performance-based variable bonus scheme in January 2013; and established a jointhealth and safety committee and a joint management and union committee.We also launched an employee handbook during the year which acts as an important source ofinformation to employees on a range of items affecting them.

Management and union representatives meet on a monthly basis where issues affecting employeesare discussed and resolved. Employees can also convey grievances directly through a formalgrievance procedure, which are heard by an independent chairperson.

We recognize that good employee relations are animportant part of ensuring our company's continuedsuccess. We seek open, constructive dialogue withour people and provide them with a range of formaland informal platforms to engage with us. Ouremployee relations policy sets the standard for thedevelopment of trust and mutual respect, and ourhuman rights policy enshrines the right of allemployees to collective bargaining and freedom ofassociation.


Our challenge is to extract ore without destroying these special habitats or fragile locallivelihoods. We carried out a year-long ecological study, including the Liberian ForestryDevelopment Authority, Conservation International, Fauna and Flora International, and theCôte d’Ivoire-based Afrique Nature. The study proved that the forests close to the minesites show high levels of biodiversity. For example the studies identified 742 species ofbutterflies and moths in the forests, but it also revealed that this was under threat fromlong-term degradation and decline. We have an opportunity not only to mitigate damagefrom mining, but to start reversing that trend.

Making mining more sustainable


The Nimba mountain range, where some of the most accessible deposits of ironore are to be found, is one of the few remaining West African primaryrainforests and home to many unique species and ecosystems.

Mining in this special area comes with unique environmental responsibilities andopportunities, and we are committed to going beyond compliance in managingour environmental impacts. Guided by the ArcelorMittal group environmentalpolicy, we subscribe to the highest standards of global best practice and followa hierarchy that seeks to first avoid, then minimise environmental impacts; andwhere doing so cannot be achieved, to rectify and compensate for any harmcaused.

Our position in this unique area also provides us with opportunities topreserve Liberia's natural heritage beyond the scope of our ownenvironmental management. Liberia's natural rain forests have beenseverely affected by the civil war, cultivation, logging and bush meat trade,and are threatened with destruction even in the absence of mining. We areresearching ways to help to stop this degradation and preserve what is oneof the most valuable natural environments in West Africa.

ArcelorMittal Liberia's concession is located in one of the country's most biologically diverse and environmentally sensitive areas.

“Conservation agreements are designed to provide incentives (such as livelihood investments) to local communitiesin return for their commitment to support conservation and sustainable resource management. ConservationInternational believes that this tool, piloted in Nimba with ArcelorMittal Liberia, may be a key element of sustainabledevelopment in the country and plans to champion its success within Liberia's national development framework.”

- Jessica Donovan-Allen , Conservation International Liberia's Country Director


Identifying our potential impact

In line with Liberian legislative requirements, we conducted an environmentaland social impact assessment (ESIA) prior to commencing mining activities.This involved a number of ecological studies, starting in 2005, and includedthe most comprehensive environmental survey ever undertaken in Liberia.Running for a full year between 2010 and 2011, the first phase of theenvironmental impact assessment study was central in quantifying ourpotential environmental impact while also adding considerably to the body ofenvironmental knowledge regarding the Nimba mountain range. Anothercomprehensive study, the Phase 2 ESIA, was conducted during the year underreview. It includes assessment of all aspects and impacts of the company'sphase 2 activities and facilities, with the aim of reducing the impacts as far asis reasonably possible.

We recognize that mining cannot be undertaken without having some effecton the environment. Our Phase 1 ESIA identified two key potential areas ofimpact – the potential for localised pollution of water from accidental spillageand discharge of pollutants like oil and fuel, and the potential for localisederosion or flooding.

In April 2011 we were awarded an environmental permit to begin phase 1operations and by May of that year we had implemented the appropriateenvironmental management plans that relate to these operations.



Managing environmental risks

Results from the completed Phase 1 ESIA informed the development of a comprehensiveseries of environmental management plans that are compulsory on all sites. The status ofcompliance is monitored on a monthly basis by the ArcelorMittal environment team.Environmental Management Plans cover, among other items, soil erosion, water usage andthe handling of any hazardous materials. In managing these impacts we implement and areguided by the relevant environmental standards, procedures and work instructions.

During the year we received a number of complaints from communities and NGOs regardingthe pollution of streams and rivers. We recognise that rivers have suffered from an influx ofsediment that have resulted from run-off from the mines, particularly during what was anunusually high annual rainfall.

We are currently spending over $3 million on sediment control construction activitiesthroughout the affected area. Sedimentation dams are installed to trap silt and ensure thatthe water is clean at the point of discharge from the site. During the year we conductedwork on sedimentation controls at the mine site and the port, and addressed soil erosionissues that were noted during the rainy season. We also conducted extensive earthworks atthe Tokadeh Mine Site to control and limit erosion from the various facilities located there.

Those water sources that have already been affected by sediment damage are beingcompensated as per ArcelorMittal Liberia's grievance redress mechanism. This has been donein consultation with the EPA.

Deforestation is an inevitable part of the land disturbance caused by mining but we restoreall sites as soon as we finish working on them. We have already issued a number ofcommunity contracts every year for the last four years, to people from Gbapa and Zolowee,to undertake re-vegetation work. We are also running our Biodiversity ConservationProgramme (BCP) to compensate for environmental impacts.

We recognize that all creeks and rivers are someone's drinking water supply; therefore weaim to have no sediment escape from the mine. All of our operations are required to abide byWorld Bank guidelines for water discharge quality.


We established a tree nursery topropagate suitable plants species foruse in the rehabilitation of mined land.

Vegetation trials have been conducted at theold Liberian-American-Swedish MineralsCompany (LAMCO) mine site in the Nimbamountains and are being monitored monthlyfor progress.

Settling ponds and drainage systems preventcontamination of surface water, while strictmonitoring of water bodies within 150 metersof our operations ensures that we are able todetect any pollution in water sources. In 2011we identified the need to improve ourstormwater management, an issue that wasaddressed in 2012. While the enhancedsystem has led to better mitigation ofsediment outflow, our efforts in this regardwere somewhat hampered by extreme rainfall,and we believe there is still room forimprovement.

We will continue to focus on this area in theyear ahead and aim to upgrade thestormwater management system further, toensure mitigation of sediment pollutionbefore the onset of the next rainy season.

One of the primary goals of ourEnvironmental Management Plan is toachieve the international environmentalmanagement system ISO 14001certification. Our target is to be certifiedduring the latter part of 2014, and in 2013we have planned extensive work to developall the systems and operational proceduresrequired for compliance. All monitoring, onand off site, will be comprehensivelyreviewed and updated to ensure that theimpacts of the current operation areassessed at all times. We are developingtraining modules which will be rolled out toall staff to ensure they understand what isrequired from them in an environmentalmanagement context.

We are also developing a comprehensive environmentallegal and permit compliance register.Our compliance will be audited regularly.

The environment team monitors the environmentimpacts of our operations, including pollution and noise;air quality; erosion and sedimentation; clearance andrestoration of vegetation; disposal of waste; waterintake; waste water discharge; sewage treatment; thetransport of fuel, oil and other hazardous materials;storage, dispensing and waste management; medicalwaste disposal; and marine pollution including ballastwater management.

While we have made progress in improving data capturefor these indicators, the quality and reliability of the datais not yet optimal. We are working on addressing thisissue so that we can fully report reliable trend data infuture years.

All contractors are required to abide by the ArcelorMittalenvironmental policy and to adhere to company andregulatory standards. The environmental team conductsinternal audits to ensure contractors meet thesestandards, while a reputable international environmentalauditing firm conducts annual external audits.

Managing compliance


“Our vision is to be able to tell our grandchildren when we are old: “We used up Nimba'siron ore, but we left it a healthier, more prosperous place: the forests are better, the airand water cleaner, and the farmers better off, than they were when we started. Weacted responsibly.”

- ArcelorMittal Liberia Policy on Caring for Nature

Protecting biodiversity

Our environmental policy, Caring for Nature, outlines our commitmentto take responsibility for the care of nature, natural resources andecosystems in our areas of operation. It applies not only to ouremployees but to every person involved in the company’s work.

Aimed at compensating for the environmental effects that are expectedto arise during the 2011 - 2015 direct shipping ore period, theprogram focuses on developing a range of socio-economic andenvironmental initiatives to restore and preserve the naturalenvironment.

We know that the growing population pressure in northern Nimbatogether with a number of damaging land management practices,contribute to the fact that the Nimba forests are in decline. The programtherefore has two main thrusts, focused respectively on community andconservation. Together with the Environmental Planning Association wehope to develop a Northern Nimba Planning Area which will allowmultiple land users to co-exist in appropriate designated zones, andpromote development based on the maintenance of a biodiverse,healthy environment.

We spent 2011 gathering information, engaging with variousstakeholder groups including local communities and the ForestryDevelopment Authority, and outlining plans for the implementation ofthis goal.

We helped a community and conservation forestry workshop to discuss andagree optimal ways to manage North Nimba's remaining forests. Over 70participants attended the workshop, including 40 representatives from localcommunities, and representatives from government and local and internationalNGOs. The results of the workshop suggest that a landscape zoning strategycan be applied to the Nimba context, that strikes a balance between forestmanagement strategies that permit sustainable resource utilization in someareas and non-use in others.


Preserving Nimba's rich and unique biodiversity requires an integrated approach that brings together stakeholders from communities, theprivate sector, civil society and government. Following extensive engagement with the Nimba biodiversity stakeholders' forum that weset up we launched a biodiversity conservation program in 2011.

Forest conservationMany communities rely on the Nimba forests for food and livelihoods, but thecurrent use of the sensitive forest areas is unsustainable. Slash-and-burn methodsof cultivation and uncontrolled hunting threaten to destroy the unique biodiversityand leave communities impoverished and with reduced access to food, water andother natural resources.

During the year under review we made good progress towards the achievement ofthis goal. We began stakeholder consultations for the landscape zoning strategyand signed four agreements with forest management authorities to assist in themove towards sustainable management and protection of the country's mostvulnerable forest ecosystems. These included a three-year memorandum ofunderstanding (MoU) with the Forestry Development Authority (FDA) coveringthe ENNR and FDA operations in Nimba. In terms of this agreement we will provideresources to the FDA and the ENNR Co-Management Committee (comprisingcommunity and FDA representatives) to support capacity-building, improve ENNRmanagement and guide the implementation of conservation and biodiversityprojects.

In terms of these MoUs we committed to providing an office and equipment toassist CFMB operations, and administrative support for the community forestguards who protect the Gba, Zor and Blei Community Forests. Commitments fromthe CFMBs include establishment of a network of these community forest guardsworking in close collaboration with the FDA, and a business plan to show how theCFMBs will take over operational costs in the future. The Gba CFMB office wasbuilt in 2012, and Zor and Blei's offices were completed in April 2013.

The program is working in collaboration with Conservation Internationalto pilot conservation agreements in six communities around the ENNR.This model makes conservation a viable choice for local resource usersby providing benefits to communities in exchange for effectiveconservation of high priority areas and species. ConservationInternational has also produced a sustainable business plan for the ENNRand conducted a sustainable finance and governance assessment toinform the design of a long-term financing mechanism to implement andmanage conservation in protected areas across northern Nimba.

Among the key objectives of our biodiversity conservation program isthe improvement of the management of the East Nimba NatureReserve (ENNR) and working with communities to manage theircommunity forests in the area.



Agricultural intensificationAlternatives to slash-and-burn methods of farming need to be introduced to securethe sustainability of the natural environment and the livelihoods of people living in localcommunities.

During the year we launched conservation agriculture pilot projects in fourcommunities around East Nimba Nature Reserve, and agriculture and livelihood pilotprojects in two communities in West Nimba. These projects train farmers inconservation agriculture, lowland farming, integrated farming methods andagroforestry. We also commenced a livelihoods and value chain study to investigateoptions for agricultural intensification, alternative livelihoods and to identify marketopportunities for raw products and potential added value chains, whereby farmers canincrease their income and food security.

The environmental team invested in building the capacity of key stakeholder groupsduring the year. We sponsored two Liberian graduates to conduct small researchprojects at the Max Plank Institute of Anthropology. Both students worked on theNational Chimpanzee survey for Liberia and have been analyzing the data that arose.We also set up scholarships at the Nimba County Community College for 20 studentswanting to study associate degrees in Forestry and Natural Resource Management,and trained 20 people from NGOs, government, master farmers and professionals inthe agricultural sector in conservation agriculture techniques.

The agricultural intensification part of our biodiversity conservationprogram focuses on increasing agricultural productivity by introducing lowtechnology improvements and different farming methods, to increaseyields with the aim of stabilising shifting cultivation and reducingdeforestation.

Building capacity


ArcelorMittal Liberia Environmental Officer, Alvin Poure explains reforestation and re-vegegation. Initially a trial reforestation plot was done in Mt. Nimba and proved positiveas plants began to sprout. The same procedure is now being effected in the Tokadeh mineand surrounding areas. The success of this reforestation and re-vegetation saves the landfrom erosion and lowers the possibility of indigenous species becoming extinct.


Our environmental surveys in the Nimba mountain area are continuously refining andextending our understanding of the local biodiversity. To date, they have revealed:

Approximately 400 species of birds, including the discovery of theendangered Gola Malimbe in Gba Community Forest (West Nimba) and theSierra Leone Prinia in the East Nimba Nature Reserve

414 species of butterflies including 2 new species, 17 new records forLiberia and 9 species endemic to the Liberian sub-region

50 species of bats

A new species of frog – Arthroleptis Langeri

A possible 7 new species of freshwater fish (awaiting confirmation)

3 new species of dragonfly in the genera Lestinogomphus (1)and Paragomphus (2)

The endemic and endangered Nimba Otter Shrew

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Surveying our biodiversity

Working together with the Liberian Forestry Development Authority,Conservation International, Fauna and Flora International, Afrique Natureand the Wild Chimpanzee Foundation, our environmental experts havediscovered new species of fish, frog and dragonfly and confirmed thepresence of a number of endemic species (those that are unique to thearea). One of these is the Nimba toad that lives on the high grasslandsand gives birth to live young, while another is the endangered Nimba OtterShrew.

A unique species to the Nimba Mountain is the Nimba Otter Shrew, a creature that lives onfreshwater crabs along the mountain streams.



Nimba Otter Shrew

The African Giant Swallowtail

During the year we completed the development of our Nimba Otter ShrewConservation study, which seeks to establish the distribution of the Nimba OtterShrew in northern Nimba, build a database and compile recommendations for theconservation of this endangered and endemic species. The project, whichcommenced in 2013, will improve knowledge about the Nimba Otter Shrew anddevelop realistic actions for conservation to help ensure its long-term survival.Results from the study will be published in the 2013 Corporate Responsibilityreport.

The African Giant Swallowtail (Papilio Antimachus) is one of the many uniquespecies on Mount Nimba. With a wingspan of up to 230 mm, this is Africa'slargest butterfly, one of the largest flying insects in the world, and considered veryrare in West Africa.

During hill-topping, male specimens assemble at the highest available point withintheir habitat range and display aggressive territorial behaviour; fighting othermales and chasing away every passing object identified as a potential competitor,apart from receptive females. This species has also been recorded hill-topping atMount Gangra.

Case studies

In Mount Nimba, our research has shown communities of chimpanzees near the mine sites, and evidence of the occasional leopard, butthere is a myriad of smaller animals. Over 750 species of butterflies and moths have been identified and several new species, including afish, a frog and a dragonfly. These researches have also confirmed the presence of some intriguing endemics, that is, species found onlyhere and nowhere else. Two of such unique species are the Nimba Otter Shrew and the African Giant Swallowtail.

The Open Door Theater, a 1970's popular movies and entertainment venue for both visitorsand residents of Yekepa, was severely destroyed. In 2012, the theater was renovated andre-opened, providing a home for arts and culture in Yekepa.


Enriching our communities

Our mining operations in Liberia offer the opportunity to positively affect thelives not only of the individuals to whom we provide employment, but thebroader communities too. As we extract iron ore from the areas where thesecommunities are located, we are committed to invest in social upliftment andeconomic development. While we recognize that it is impossible to meet themany needs of community members, we seek to develop open, transparent andmutually beneficial relationships with them so we can fully understand theirneeds and identify those areas in which it is possible for us to make ameaningful and positive difference.

We embrace this opportunity to make a meaningful difference to the lives oflocal Liberians through a range of community enrichment programs thataddress key needs in the areas of health and education. We are alsocommitted to the ethical treatment and fair compensation of thosecommunities who undergo resettlement as a result of our mining operations.

The key issues facing communities include poverty and unemployment, alow level of marketable skills and education, poor access to healthcarefacilities, poorly developed infrastructure and loss of access to farmland dueto mining operations. We address these issues by prioritizing theemployment of local Liberians; investing in the training and development ofour own employees; investment in the upgrade and construction ofeducation and healthcare facilities, and infrastructure and following an openand transparent mine resettlement plan, which includes the provision of aforum for resettled farmers to raise issues and the investment in asustainable livelihoods support program.

The communities in which we operate are key stakeholders in ourbusiness and are among the groups most materially impacted byour operations.



Sunday mornings in Yekepa, at the foothills of the misty Nimba Mountain range, sounds ofpraise and worship can be heard throughout by ArcelorMittal Liberia employees andcommunity dwellers.

Engaging community stakeholders


It is important that we build trust in the communities in which we operate and honest, two-way dialogue plays a critical role in thisregard. Our engagement with communities is guided by the ArcelorMittal Group External Stakeholder Engagement Procedure. In linewith this framework we are committed to identifying key community stakeholders, analysing their concerns and developing a plan forregular engagement so that they have a forum through which to raise any concerns. Furthermore, we are committed to providing themwith relevant information about our operations and their impacts on communities.

During the year we formally launched 52 Local Consultative Forums (LCFs) whichform a vital interface between ArcelorMittal Liberia and local community members.These forums provide us with an opportunity to discuss with communities all issuesthat affect their welfare. Each local consultative forum comprises and is chaired bylocal community members. Through these forums, regular meetings are held with allaffected people to share project information, communities to raise concerns andgrievances and community investment projects to be identified. We have also trainedLCF members in the following areas to build their capacity:

Community safetyInformation disseminationCommunity engagement facilitationConflict resolution and grievance management

Throughout the year under review, a total of 103 Local Consultative Forum meetingswere held across our three counties: Bong, Grand Bassa and Nimba. The LCFs haveproved to play an active role in facilitating important conversations with communities.Topics have included the level of compensation payments to community membersaffected by our project,conveying key company safety messages in the local marketplaces and town halls, attending stakeholder conferences, reporting incidentsoccurring within communities, promoting equity with local contractors in therecruitment of temporary workers, and safeguarding the community’s interests intheir engagement with ArcelorMittal Liberia.

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Most Liberian locals have little or no access to healthcare facilities, and yet they contend with malaria, water-borne diseases and thosecaused by poor sanitation, HIV/Aids and the health effects of a long civil war.

Community health and safety


We recognize that health needs to be addressed on a whole-community basis if diseases are to be effectively combated. Wehave built and run hospitals in Yekepa and Buchanan and a medicalclinic in Green Hill Quarry, Bong County. Through these facilitieswe provide free 24 hour healthcare to employees and theirfamilies, and subsidized healthcare to community members.

In 2012 ArcelorMittal's Yekepa and Buchanan hospitals treated21,884 patients. We believe it is our corporate responsibility toprovide healthcare assistance to communities around ourconcessions. Therefore we go above and beyond our MDArequirements in providing the best healthcare available in regionswhere there is none at considerable expense to the company.

During the year we began preparatory activities for theconstruction of a clinic in Gbapa, Nimba County.

A range of other healthcare initiatives address the key health-related issues facing communities.


Partnership to fight malaria

All areas of Liberia are favorable to malaria transmission and the entire population is at risk of con-tracting the disease. According to data from the 2009 Health Facility Survey (HFS), malariaaccounts for 35% of outpatient department attendance and 33% of in-patient deaths. Childrenunder five are particularly at risk. It is the foremost health-related challenge facing the countryand Yekepa and Buchanan have among the highest prevalence rates. In 2010 only 5% of Yekeparesidents reportedly owned a mosquito net

Working in partnership with the Ministry of Health and Social Welfare, the US Agency for Inter-national Development (USAID) and the Global Health Initiative (GHI), we have established ongoingprograms to combat malaria. These include the distribution of insecticide-impregnated mosquitonets and awareness and training material on the use of larvicides during breeding seasons.Employee volunteers conduct indoor residual spraying and distribute drugs obtained through theNational Malaria Control Program free of charge. It is estimated that around 10 500 people havebeen protected since the start of the program. In Yekepa alone, prevalence of the disease hasdropped from 41% in 2010 to just 20% in 2011.

The ArcelorMittal Fighting Malaria program was commended during the year by the GBC HealthBusiness Action on Health Awards in the category ‘community Investment’: special focus on AIDS,tuberculosis and malaria. In particular the program was noted for the way in which it leveragedpartnerships to enhance best practices, and included foundations for long-term sustainability.

‘The prevalence of malaria has dropped from 41% to just 20% injust one year following the partnership to combat malaria’.

During the year we embarked on a ground-breakingpartnership with the Bhagwan Mahaveer ViklangSahayata Samiti (BMVSS) – one of the world's largestcharities for the physically disabled. Through theArcelorMittal Buchanan hospital we launched Limbs forLiberia which will provide local community membersfrom Monrovia and Grand Bassa, Bong and NimbaCounties with state-of-the-art prosthetic limbs.Liberia's long civil war left many amputees in its wakeand the pioneering prosthetic devices, which will befitted at the ArcelorMittal hospital, will provide thesepeople with a full range of movement. We workedwith local charities to identify the first 250 recipientsand have invested in training for local hospital staff toensure they are equipped with the specialist skillsnecessary to fit the devices.

Limbs for Liberia

250 amputees receivedprosthetic limbs at the

ArcelorMittal Buchananhospital

Addressing the ravages of war


There are many concerns regarding rail safety, especially since 20 years of no rail activityhas caused residents along the rail to become accustomed to misuse of the tracks. Thekey message that the company communicates is “expect a train at any time and from anydirection.” In April, the annual one month road and rail caravan was held, utilizing localcelebrities, cultural groups, partnership with the police, music, promotional materials,advertising and other means to speak to communities near the rail about keeping off thetracks.


We believe it is our responsibility to ensure the safety of people living along our railroutes. Our community safety program focuses on raising awareness of road, rail andwork-related safety.

Liberia's train tracks have not been operational for 20 years but since February 2012we have been operating two trains a day along the rail corridor between Yekepa and theport of Buchanan. Thousands of people live along these tracks and are getting used toseeing them on a daily basis.

We launched a month-long rail safety campaign during the year to raise awareness ofroad and rail safety along this corridor, and ensure that local community members areaware of the dangers of using railroad tracks. The mobile campaign began at GrandBassa and travelled through Bong into Nimba, stopping in villages along the access road.Centred on the theme ''Stop, think and act safely'', the campaign engaged 20,000 localresidents in more than 25 communities in the Nimba, Bong and Grand Bassa counties. Itincluded wide distribution of awareness and educational materials, a road safetyrefresher training workshop for commercial vehicle operators and awareness drives invillages and schools.

All 52 local consultative forums received training in how to report community safetyhazards.

In August we also held the first-ever security stakeholder conference in Yekepa. Thisresulted in a very successful program, run in partnership with the Liberia National Policeand held in all three counties in which ArcelorMittal Liberia sponsored training to raiseroad safety awareness and improve the driving skills of taxi drivers and motorcycleriders.

20,000 residents engaged in our month-long rail safety awareness campaign.

Driving community safety awareness


Dr. John Malogo Kongolo, head of the ArcelorMittal Liberia school system, says his missionis to upgrade the quality of education through qualified teachers, the teaching of relevantsubjects with global demands, adequately furnished workshops and classrooms, andutilization of the best tools.Well-equipped computer and science labs, PowerPointclassroom presentations and an international Australian certification program are just afew of the components he plans to introduce as part of a goal to ‘transform tomorrow’ forthousands of children in the ArcelorMittal school system.

Educating the future

In line with our MDA we took over four Yekepa schools from the governmentand currently run these as part of our school program, providing free educationto the children of employees. These schools are also open at a subsidized rate tothe dependents of non-employees, who comprise more than 60% of the pupils.In addition to a kindergarten, primary and high school, the community nightschool offers adult education to community members.

In 2012 we achieved our goal of completing construction of the new primaryschool in Wamah Town, Bong County. With seven classrooms and twoadministrative offices, the school replaces an old run-down building thatpreviously served the community. Around 250 children were enrolled in thisschool during the year.

During a community meeting held in early 2012, residents of Zolowee in NimbaCountry requested our assistance in upgrading their school to cater to thegrowing student population. An assessment of the town's critical needs,conducted by the ArcelorMittal Yekepa Community Liaison Unit, confirmed thatthe school was among the town's top priorities. In September 2012, theArcelorMittal Foundation approved funding to construct an annex of threeclassrooms and a kitchen, provide furniture and equip a small library with booksand other learning materials. Construction work was completed by volunteers inFebruary 2013 and the school was officially dedicated to the community inMarch 2013. It serves 223 students from kindergarten to grade 6, and hosts sixteachers.

Education is critical for the future social and economic success of Liberia, but it is estimated that less than 60% of the adult population isliterate. We have made significant investment in providing Liberian children with improved access to quality education.


School enrollment figures for 2012

ArcelorMittal Community NightSchool (Adult education)

ArcelorMittal High School

Area B (kindergarden andprimary school)

Area C (primary - afternoonschool)

Makinto Public School *

Warnah Town Primary School *

Total

School Males Females Total Pupils

85

256

200

128

120

120

140

183

221

122

127

127

225

439

421

250

247

247

1,829

* These schools were built by ArcelorMittal Liberia for communities.However they do not form part of the ArcelorMittal Liberia School System.


Sponsoring the education of individual children

Previously the trust's funds were only sufficient to cover children inYekepa, but during the year we were able to expand it to reach childrenliving in the Bong and Grand Bassa counties. In the 2011/2012 schoolyear, 99 students (54 male and 45 female) benefited from the programunder the sponsorship of ArcelorMittal Liberia and OdebrechtConstruction International Inc and private individuals. The programcovers school fees and educational materials including uniforms andshoes for the beneficiaries.

We also launched the ArcelorMittal Liberia Advanced StudiesScholarship Program, designed to help young Liberian graduates obtainadvanced degrees from accredited academic institutions. Five youngLiberians were awarded the scholarship and commenced studies in early2013 at universities in Kenya, China and Australia. They will studyfurther in the fields of analytical chemistry, procurement and logistics,chemical engineering and environmental management.

We also opened our operations to 350 school and college students inthe Montserrado, Nimba, Bong and Grand Bassa counties, providingthem with the opportunity to gain hands-on real-work experienceduring their vacation.

We will award a total of US$200,000 in scholarships everyyear to Liberian students who wish to pursue careers relatedto mining, procurement and the environment.

The ArcelorMittal Sponsor a Child Education Trust provides ArcelorMittal employees from across the globe with the opportunity to makea financial contribution to the education of individual Liberian children.

County social development fund

In terms of our Mineral Development Agreement (MDA), we contribute US$3myear to a Social Development Fund for development projects that benefit theNimba, Grand Bassa and Bong counties. The management and governance of theCounty Social Development Fund has been a challenge and an ongoing reviewprocess is currently underway. ArcelorMittal is also fully participating in an activityto review the workings of the fund together with Friends of the Earth (Europe)and Sustainable Developement Institute of Liberia through a process prescribed bythe Organization for Economic Co-operation and Developement (OECD)Guidelines for Multinational Enterprises.

This fund is intended to place greater control for local development in the handsof beneficiary communities, allowing them to reap direct dividends from theextraction of iron ore. To date, we have paid US$22m to the fund.

US$3m investedannually in the countysocial development fund.



Resettlement and infrastructure development

We recognize that mining activities and the construction of roads and railways results in loss of agricultural land and livelihoods tocommunity members.

We have a comprehensive and transparentMine Area Resettlement Plan in place, whichis aligned to international standards andbased on robust socio-economic studies ofthe impact of our operations on affectedcommunities.

It can be accessed by the public athttp://www.arcelormittal.com/liberia.Through this program we are committed toproviding fair compensation to affectedfamilies and treating all stakeholders in anethical and humane manner.

In 2011 we began making payments to 200farmers in our mine areas, followingextensive stakeholder engagement on theissue of resettlement and the company'sproposed compensation. However, thesepayments were met with mixed levels ofsatisfaction and some farmers wereunhappy with the payment they received forloss of crops.

Because most farmers rely onsubsistence agriculture, we recognizethat they do not only lose their cropswhen they lose their land, but ratherlose an ongoing means of survival.For this reason we have madesignificant investment in ouragricultural intensification program(see page 59) and livelihood supportprogram that will commence in2013.

Part of our community programinvolved investment in localinfrastructure to benefit localcommunities. Such investment hashelped to develop communitymarkets, build wells and waterpumps, schools and latrines. During2012, we constructed 47 handpumps and built seven market halls inBong, Bassa and Nimba Counties.


ArcelorMittal employees represent a force for potential good. Theirenergy, enthusiasm and commitment to Liberia can be harnessedthrough employee volunteer programs to significantly extend thereach and impact of the company's social upliftment programs.

The upgrade of the Zolowee school was undertaken by over 76 volunteersfrom Zolowee and ArcelorMittal. Employees and community members workedtirelessly together for five months under the leadership of our CommunityService Officer and a committee of ArcelorMittal technicians, to complete thework.

In addition to contributing to the Sponsor a Child Education Trust, employeesare encouraged to volunteer their time, skills and personal resources to make adifference to their own communities. Employees often understand the needs ofcommunities better than anyone, and those who are actively engaged insupport of registered non-governmental charitable and communityorganizations can apply to the ArcelorMittal Foundation for a financialcontribution in the form of a “mini-grant”. During the year we approved threemini-grants of US$5,000 each. These funds have been channeled to:

the Palava hut meeting hall project in Sehyigeh, benefiting over 4,000community members

the Library Project in Ganta, benefiting around 1,500 students; and

the women empowerment project in Tappita, benefiting more than 100women.

We also launched a Community Service Program during 2012 to allowemployees to volunteer on projects supported by the ArcelorMittal Foundation.In the year ahead we hope to develop a formal employee volunteering program.

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Employee volunteering

We are guided by the ethical principles outlined in theArcelorMittal group's code of business conduct.

This applies to all directors, officers and employees and includesmandatory guidelines on:

Competition and antitrustPayments and/or gifts to governmentofficialsTrading in the Securities of thecompanyConflicts of interestFair dealing in respect of customerrelations, supplier relationships,confidential information and personalinformationProtection and proper use of companyassetsEnsuring a work environment free ofharassment and discriminationOccupational health and safetyRespect for the environment

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Code of business conduct

Transparent governanceAs part of the global ArcelorMittal group, we are committed to the highest standards of good governance and ethical business practice.We recognize that our integrity and reputation are key assets that must be preserved at all times – they have a material impact on ourability to maintain a relationship of trust that must exist between the company and all its stakeholder groups.

We seek to go beyond compliance in ensuring we meet regulatoryrequirements; engage in open dialogue with our stakeholders; ensurequality, transparent disclosure and reporting; and empower the board,management team and individual employees to fulfill their responsibilityof being good corporate citizens.

The ArcelorMittal group continually monitors legal requirements and bestpractices in the United States, the European Union including Luxembourgto make any necessary improvements to the corporate governancestandards and procedures by which we are bound.

“The duty to protect human rights rests with governments, but otheractors in society, including business, have a responsibility to respecthuman rights. Extractives companies therefore have a uniqueopportunity in the countries in which they operate to encourage highstandards of conduct by security forces, and to have a positive impacton local governance, peace and stability.”

- The Voluntary Principles on Security and Human Rights


Building trust through open engagement

To develop this understanding and build relationships of trust and mutualrespect, we need to engage openly and frequently with all stakeholdergroups. Doing so will also build and protect our brand and reputation, andsafeguard our license to operate.

We are guided by the ArcelorMittal group external stakeholderengagement procedure, which outlines the minimum requirements forestablishing and maintaining good relationships with local stakeholdersincluding local community members, non-governmental organizations(NGOs), local authorities, customers, suppliers and other institutions. (Forinformation on how we engage with internal stakeholders, see page 33.)Informed by this group-wide procedure, we officially launched theArcelorMittal Liberia Stakeholder Engagement program on 1 May 2012,which includes a formal stakeholder engagement strategy andimplementation plan.

The Corporate Responsibility Forum for Liberia (CR Forum) celebrated itssecond anniversary in 2012. At the end of 2012, the membership stoodat 37 companies and organizations. The Executive Committee embarkedon a process to reformulate the Forum's strategy reflect currentdevelopments in corporate responsibility and governance. ArcelorMittalwas requested to continue as chair of the Forum during the reform phase.

The CR Forum is a private sector initiative that aims to promoteresponsible investment, good corporate citizenship and collective actionfor the sustainable development of Liberia. It provides a forum for sharingideas and collaborating on corporate responsibility issues.

What we do has an impact on others – we recognize the need to understand these impacts and manage them responsibly, taking therights and priorities of our stakeholder groups into account.

Our dedicated communications team continued to support external stakeholderengagement by working hand in hand with the external affairs and corporateresponsibility team. We distributed copies of the quarterly 1 Magazine to externalstakeholders located in each of our concessions, and other communication mediathroughout the year. We also communicate important messages on largebillboards along major highways from Monrovia, Bong, Nimba to Grand Bassacounties and notice-boards along the railroad corridor and in mining areas. Wemake use of mass media platforms such as television, newspapers and radio tospread a variety of messages about the company and its activities.

Our corporate governance ethos is closely aligned to the principles of the LiberianExtractive Industries Transparency Initiative (LEITI www.leiti.org.lr ), which wasdeveloped to ensure that companies operating in extractive industries are heldaccountable and do business in a transparent and sustainable way and thatgovernments account for all the payments received from extractive industries. In2012, we submitted our payment reports for fiscal 2010 - 2011 to the Initiativeand all disclosed information was audited to international standards.

We also sit on the LEITI multi-stakeholder panel, which conducts road shows andtown hall meetings to keep communities informed about the financial benefitsthat accrue from the country’s natural resources. The information deliveredthrough these forums is generally viewed as independent, reliable andtrustworthy, and has served to strengthen community relations and build strongpartnerships between companies and stakeholders.

Starting in 2013, the ArcelorMittal group is represented on the globalboard of the Extractive Industries Transparency Initiative (EITI).



While we always seek to foster positive relationships with local community members,we recognize that community views may differ to our own on a number of issues. Ifconstructive and meaningful engagement is to be maintained, it is critical that wegive due attention to community grievances, provide people with the means to airtheir views and raise issues, and ensure that they receive feedback on any concerns.This is an ongoing process and forms a vital part of our community engagementprogram.

Historically we have relied on walk-in communication, local consultative forums, thirdparty sources and information gleaned from a dedicated email address and telephonenumber to remain abreast of community grievances. Responding to a specific need,we also established a Mine Resettlement Coordination Committee in Nimba Country,comprising local government officers who have developmental and environmentalexpertise in Nimba County, members of civil society and ArcelorMittalrepresentatives. Chaired by the office of the County Superintendent, the Committeeprovides technical guidance to the resettlement programs and ensures that theinterests of affected persons are protected through consultations, conflict resolutionand grievance redress. Its terms of reference were agreed and published in 2012.

We formally record and investigate any complaint lodged against the company. Thecomplex nature of some of these grievances calls for extensive and ongoingengagement but we are committed to doing what it takes to try and resolve anyissues raised. The majority of grievances are collective and delivered by communitieson behalf of affected persons. In 2012 these related to sediment flow from the minesite to 17 surrounding farms and objections to changes to compensation rates as setby the Government of Liberia. We are required to abide by the rates for crop and treepayments published by the Government of Liberia each year.

Our formal stakeholder engagement program, launched during the year,has added an important element to these community grievanceplatforms. It includes a formal grievance reporting and redressprocedure.

Addressing community grievances


We also have a whistle-blowing system in place that allows employeesto anonymously report corrupt, fraudulent or other unethical behavior.

Zero tolerance approach to corruption

Our Code of Business Conduct outlines a clear, uncompromisingpolicy against corruption. Appropriate management of this issue isvitally important to the reputation of the company – at all times weneed to be able to demonstrate that we conduct business based onmerit and avoid exerting improper influence on governments orofficials.

We comply with anti-corruption laws wherever we do business,including the anti-corruption convention of the Organization forEconomic Cooperation and Development (OECD Convention), theEuropean Council's Penal Convention on Corruption of January 1999and the U.S. Foreign Corrupt Practices Act (FCPA).

All ArcelorMittal Liberia employees and contractors receivemandatory training in our anti-corruption procedure.This provides detail on the way in which we define the various typesof corruption and contributions, and a definition of potential partiesthat might be involved in corrupt activities.

The procedure outlines the accounting requirements and internalcontrols in place to combat corruption, and details the consequencesto employees and contractors who engage in corrupt businessdealings. It also includes a model anti-corruption clause for use incontracts, and lists the various internal channels available toemployees should they require further clarification, information orassistance on anti-corruption.


The procedure ensures all employees and contractors know how to behave whenfaced with unclear situations.

Upholding human rights

It was derived from international human rights declarations including theUnited Nations (UN) Universal Declaration of Human Rights and the twoInternational Covenants making up the International Bill of Human Rights;the International Labor Organization's (ILO) Declaration of FundamentalPrinciples and Rights at Work; and the United Nations Global Compact.

The policy includes specific provisions for:

• Promoting health and safety• Promoting freedom of association• Eliminating forced or compulsory labor• Abolishing child labor• Eliminating unlawful discrimination in the workplace• Eliminating harassment and violence• Providing competitive compensation and remuneration• Upholding conditions of employment• Avoiding involuntary resettlements• Respecting indigenous peoples' rights• Adopting proportionate security arrangements• Developing practices for land and water use

Employees and contractors undergo mandatory training in human rightsand receive individual copies of our human rights policy. All our securityguards are also required to complete month-long certified training onhuman rights, ethics and the standards of conduct we expect of thirdparties operating on our behalf. The training program was developed bythe Liberian Police Academy in collaboration with the United Nations andadheres to international best practice on the protection of human rightsin the context of security contractors.

Our business sometimes exposes us to situations that raise particular human rights challenges. We are governed by the ArcelorMittalgroup human rights policy which sets out the principles for our actions and behavior in relation to human rights

ArcelorMittal Liberia complies with the Voluntary Principles on Security andHuman Rights (www.voluntaryprinciples.org). These international principles guidecompanies in maintaining the safety and security of their operations within anoperating framework that encourages respect for human rights.

Compliance with the principles are mandated in the MDA. All security contractorsare guided by the principles and bound by a contract of service. We monitor andsupervise the compliance of security contractors to this effect.

During the year we held a briefing session with security contractors, focusing onthe importance of the voluntary principles, how they pertain to security andhuman rights, and their practical application in our operations. Securitycontractors received training in the principles in 2009 and 2010 and the briefingsession conducted during the year served to reinforce this training.

The session provided practical guidelines on how to conduct security riskassessment and identify the root cause of conflict, and outlined the ArcelorMittalLiberia incident response plan which gives detail on the procedure to be followedwhen responding to an incident.

We will continue to conduct ongoing refresher training for oursubcontracted guard force and implement a vetting processfor the recruitment of employees in the Security Department.

Voluntary Principles on Security and Human Rights



The company strives to procure locally wherever possible, provided that this is the bestlong term best solution. In Yekepa, SEGAL, one of our many Liberian owned and operatedbusiness contractors provides security services for the concession area.


Sourcing responsibly

Our suppliers are crucial to supporting our commitment to sustainability and goodgovernance, and we comply with the ArcelorMittal group Code for ResponsibleSourcing. This sets out our commitments to suppliers and our expectations ofthem, while defining minimum requirements for responsible sourcing. Itcomplements and supports existing ArcelorMittal policies and guidelines,including our Code of Business Conduct and policies on human rights, health andsafety, the environment and anti-corruption guidelines.

We have compiled a detailed guidance document to support both our buyers andsuppliers. It explains what we mean by responsible sourcing and outlines theresponsibilities of both parties to make this happen.

We ask all our suppliers and contractors to formally commit tomeeting the requirements set out in our Code forResponsible Sourcing, but recognize that the success of ourresponsible sourcing drive will lie in ongoing collaboration andpartnership with this important stakeholder group.

Photography

ArcelorMittal photo library:

Jaco Boshoff, Andre Douwenga, Hesta Baker-Pearson, Jasper Kai, Stephen Hird, Professor Ara Monadjem, Ben Phalan (NimbaOtter Shrew), Szabolcs Sáfián (African Giant Swallowtail)


Copyright 2012 ArcelorMittal.

Designed and produced by:

Design and layout:

Contributors:

Printed by:Arcelor Mittal South Africa

Waheed Nagia, Tersia Kellerman, Elaine Myburgh

Juliet Pitman, Marcus Wleh, Hesta Pearson, Annie Heaton

ArcelorMittal South Africa

This report is printed using papers made from 100% post consumer wasteand are approved as an FSCs Recycled product. The inks used are vegetablebased. The printer is registered as an FSC supplier accredited with ISO9000:2000 Quality Management system, ISO 14001:2004 EnvironmentalManagement System and is also certified as a Carbon Neutral printingcompany.

ArcelorMittal Liberia Ltd

P.O. Box 1275

15th Street @ Tubman Boulevard

Sinkor

Monrovia, Liberia

www.arcelormittal.com

The school children used in this shootare all pupils attending ArcelorMittalschools in Yekepa.

They are the faces of ‘I am tomorrow’,a nationwide campaign ArcelorMittalLiberia is launching in 2013.

corporate responsibility report 2012/media/files/a... · her words are worth quoting in full. “we...

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