ArcelorMittal, a leading steel company, plans to invest more resources to develop its ore extraction operations in Michoacan. During the announcement, Michoacan Governor Alfredo Bedolla said he considers the investment of great importance for the state’s economic recovery, as well as an impulse for development.
The company announced an investment of over US$150 million toward an extraction iron ore project in the Las Truchas area, located in the state’s coastal area near the border with Guerrero. Bedolla highlighted that the investment is added to the US$100 million the company invested last year to build a rolling mill, which produced 500 direct jobs and 3,000 indirect jobs and would increase the national production of rolled steel from 2.5 million tons to 5.3 million tons, which is approximately one third of the national production.
“More investment from ArcelorMittal is coming in the future. It is a great opportunity to produce steel in the Sierra Costa of Michoacan and I am sure that there will be good news for other parts of the state soon,” said Bedolla.
Bedolla recognized the work the company has carried out in the state and expressed his support for further developments.
On Sept. 28, 2017, ArcelorMittal announced a major investment program for over US$1 billion which focused on developing the company’s downstream capabilities, sustaining the competitiveness of its mining operations and modernizing its existing asset base, as well as enabling the company to meet higher demand from domestic customers.
In 2021, the Las Truchas mine was closed by The City Council Government of Lázaro Cárdenas and the Ministry of Defense due to a revocation of a permit for the use of explosives and other dangerous substances at the site, which according to the authorities should be renewed annually. The company said that according to the Federal Firearms and Explosives Control Act, this is not the case. Furthermore, ArcelorMittal said the permit cancellation was part of a “retaliation” after the company refused to accept an increase in property taxes of 70 percent and rebuffed attempts to recover around US$6 million in debt.
ArcelorMittal has collaborated successfully with the state government in the past. Recently, the company signed an agreement to supply eco-gravel to develop local public infrastructure projects. The company donated over 20 tons of eco-gravel, which is a byproduct of the steel it produces.
ArcelorMittal is one of the most important steel companies in Latin America, though it is based in Luxembourg. It operates the El Volcan mine in Sonora, the Peña Colorada mine in Colima and the Las Truchas mining complex in Michoacan.