SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil

TRANSPARENT GOVERNANCE I INVESTING IN OUR PEOPLE I MAKING STEEL MORE SUSTAINABLE I ENRICHING OUR COMMUNITIES
MANAGEMENT FOR LEADERSHIP I A WORD FROM THE CEO I ORGANIZATIONAL PROFILE I REPORT PROFILE

Sustainability Report 2008

ArcelorMittal Brasil

transforming
tomorrow
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Contents

MANAGEMENT FOR LEADERSHIP 1

Strategic Vision 2

A WORD FROM THE CEO 3

ORGANIZATIONAL PROFILE 4
Markets served 5
Sector challenges 6

TRANSPARENT GOVERNANCE 7
Values 8
In Brazil and the World 8

INVESTING IN OUR PEOPLE 10

Employee profile 11
People management 12
Professional development 14
Health and Safety 16

MAKING STEEL MORE SUSTAINABLE 18

Water 20
Energy 22
Transport 24
Materials 24
Emissions 25
Waste 26
Biodiversity 29
Sanctions 33
Environmental Education 33

ENRICHING OUR COMMUNITIES 35

Value Generation 36
Suppliers 37
Communities 39
Culture 41
Social Promotion 42
Santa Catarina floods 44
Human Rights 45

REPORT PROFILE 46
GRI Contents 47
Glossary 51
Awards and Recognitions 52
Credits 52
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil

1 STRATEGIC VISION A WORD FROM THE CEO

ArcelorMittal Brasil keeps the best practices

in people and environmental management,
guided by sustainability principles. A constant
quest for efficient processes, focusing on
management gains and, consequently, better
business opportunities.

Management
for Leadership
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
2
Under the responsibility of
“transforming tomorrow”, the
ArcelorMittal’s sustainability
strategy is:
To invest in our people
Making all and every
person working for us feel
appreciated
To make steel more
sustainable
Using our steel expertise
to develop more ecological
processes
To enrich our
communities
Having a leading role in all
communities where we operate
All these are sustained by
Transparent
Governance
Our position as the world number
one steel company, with the capacity
to produce 130 million tons of steel
per year and present in more than 60
countries, implies huge economic, social
and environmental responsibilities. A
leader in the four market segments
of long, flat and stainless steel –
automotive, construction, house hold
appliances and packaging industries
–, ArcelorMittal was created in 2007
with the merger of leading global
players (Arcelor and Mittal Steel), and
endeavours to continue as a global actor
in terms of sustainability.
To ensure such a condition,
ArcelorMittal is committed to
professional excellence and life
quality of more than 300 thousand
employees and families around the
world, encouraging the economic
development of the communities where
it operates and the responsibility for
the environment, with permanent focus
on technological innovation and the
application of transparent corporate
governance.
The ArcelorMittal’s commitment to
“Transforming Tomorrow” is based on this
Corporate Responsibility strategy.
ArcelorMittal Brasil
An important company of the Global
group, ArcelorMittal Brasil follows the
strategic vision of the parent company.
Consequently, it is also distinguished in
its sustainability actions, and, likewise,
Steel Coils at ArcelorMittal Vega
is a benchmark for the steel industry.
With activities in four countries –
Brazil, Argentina, Costa Rica and
Trinidad & Tobago – and consisting
of the assets of ArcelorMittal Aços
Longos, ArcelorMittal Tubarão and
ArcelorMittal Vega, ArcelorMittal Brasil
is proud of its good practice indicators.
It was the first Brazilian steelmaker
listed in the Bovespa Corporate
Sustainability Index, and remained
there until going private. It has
repeatedly received distinctions in local
and international rankings of corporate
sustainability – among them, the Top
Ten in the list of 150 Best Companies
to Work for, by Guia Você S/A – Revista
Exame – and endeavours to perfect
both its productive processes and its
relationship with society.
Management for Leadership
STRATEGIC VISION
Commitment
With 15.3 thousand employees,
distributed in 27 industrial units with rated
capacity for 15 million tons of long carbon
steel and flat carbon steel, ArcelorMittal
Brasil – which in 2008 presented
consolidated results with net revenues of
R$ 19.8 billion (against R$ 15.3 billion in
2007) and net profit of R$ 1.4 billion –
honours its commitment to an integrated
management model, notwithstanding its
business diversification.
Highlights are activities in the
environmental area that go beyond
compliance with the law: the company
invests in processes to eliminate or
reduce environmental impact. In the
social scope, priority goes to education
and programs for generating income in
neighbouring communities.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
3
In 2008, as any other company in the
steel industry, ArcelorMittal Brasil
experienced antagonistic moments.
The first three quarters were
extremely positive for all segments of
our business in Brazil, with expressive
results for the Company.
And this makes us proud.
Stimulated by Brazilian economic
growth, we maintained our outstanding
position in the long carbon steel and
flat carbon steel markets. Our units’
performance indicators compared
to the best in our Group, especially
concerning production costs, and
operating and management efficiency.
Service sharing, through the
development of the ArcelorMittal Brazil
Corporate Centre, ensured increasingly
higher synergetic gains.
As from September, however, the
dramatic global economic change
significantly impacted our results and
altered the scenario for the following
months. In spite of still satisfactory
figures, the situation demanded
caution and required adaptations at the
Company.
The ArcelorMittal’s reaction when
facing the new business reality was
Carlo Panunzi
decisive and quick. The Group started
focusing its action on a short- and
mid-term strategy emphasizing the
so-called “3 Cs”: Cost, Customer and
Cash. Among the adopted decisions,
investment plans were reviewed aiming
at cutting expenses in upcoming
quarters. Regarding working capital,
we managed to improve cash flow,
both with reduction in raw material and
finished product inventories, and with
closer monitoring of accounts payable
and receivable.
In line with the Group’s guidelines,
ArcelorMittal Brasil managed to adapt
to the new reality in timely fashion. We
relied on the engagement of all areas of
the Company to meet the new demands
of the international scenario by carrying
forward budget reviews, and reducing
administrative overhead and operational
process costs.
These measures, taken as a response
to face the new economic situation,
however, have not made us deviate
from our commitment to Quality,
Leadership and Sustainability, the
cornerstones of our actions.
As the actions defined in 2008 make
sure ArcelorMittal Group is well
positioned for the future, we feel
confident to achieve our objective to
contribute to the economic, social and
cultural development of the country.
Management for Leadership
A WORD FROM THE CEO
In this report we disclose the main
activities related to our sustainable
operation in 2008. We are sure that
many of the projects described here will
not only be continued, but diversified
and expanded.
We reaffirm our commitment to
initiatives in favour of sustainability,
especially the principles of human
rights, labour standards, environmental
protection and anti-corruption as
established in the UN Global Compact,
of which we are a signatory.
With the same entrepreneurial spirit
that makes the Company the world
leader in steelmaking, we intend to
keep our support to the communities
in which we are inserted, intensify
transparent, profitable relations with
employees, suppliers, consumers
and other stakeholders, and further
progress in the sustainability of our
businesses.
Carlo Panunzi
CEO ArcelorMittal Brasil
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil

4 MARKETS SERVED SECTOR CHALLENGES

One of the major steel companies in Latin

America, ArcelorMittal Brasil has a remarkable
position in the long and flat carbon steel
sectors. Constituted in December 2005,
it gathers the three most competitive
steel companies in Brazil – ArcelorMittal
Aços Longos, ArcelorMittal Tubarão and
ArcelorMittal Vega.

Organizational
Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Organizational Profile
MARKETS SERVED
5

Markets Served

Long steel – ArcelorMittal Aços Longos Flat Steel – ArcelorMittal Tubarão,

ArcelorMittal Brasil
has production capacity of 5.6 million located in the Greater Vitória area (ES),
locations 1 tons of steel and 1.55 million tons of has a steel production capacity of 7.5
Brazil
drawing steel per year. We are the South million tons per year; and ArcelorMittal
1. Bahia
American leader in wire for industrial Vega, located in Sao Francisco do Sul
2. Espírito Santo
3 and agribusiness applications, and one (SC), has a steel production capacity
3. Minas Gerais
of the top three global producers of of 1 million tons of cold rolled coil and
4. Santa Catarina 2
wire rod for steel-cord – steel used in galvanized per year.
5. São Paulo 5
radial-ply tires. The company relies on an
extensive nationwide product distribution ArcelorMittal Tubarão is leader in the
Argentina
network, including the Belgo Pronto international market of slabs and supplies
4 system, which delivers cut and moulded hot rolled products to the domestic
Costa Rica
material for civil construction use. The market. ArcelorMittal Vega is a steel-
company has units in seven cities in three transformation specialized unit and it
states: Itaúna, Joao Monlevade, Juiz de works with coils supplied by ArcelorMittal
Fora and Sabará (MG); Cariacica (ES); Tubarão, cabotage-transported to the
ArcelorMittal Brasil and Sao Paulo and Piracicaba (SP). industrial unit. Its specialization is the
in figures: production of thin cold coils and galvanized
Since 1997, ArcelorMittal Aços Longos coils. About 70% of its total production
Industrial units: has also been a part of the joint venture goes to the automotive market, especially
27 controlling Belgo Bekaert Arames, with for the auto body production.
Employees: a production capacity of 900 thousand
15,306 tons of drawing steel per year, therefore
enjoying the position of largest
Net equity: wire manufacturer in the Americas
R$ 15.700 billion and leader in the domestic market,
Total Sales: with products for a large number
R$ 24.730 billion of segments such as agribusiness,
consumer goods, civil construction,
Net Operating Revenues:
petroleum exploration, the automobile
R$ 19.800 billion industry and household utensils.
EBITDA:
R$ 6.349 billion
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
6
Sector Challenges
The steel industry lived two different
moments in 2008. Until September,
the companies enjoyed the same
growth rhythm as in 2007. Stimulated
by expanded consumption, especially
in developed countries, figures
promised expressive revenues at the
end of the period.
In the last quarter, however, the global
financial crisis dramatically changed
the scenario, altering all perspectives
for 2009. According to the Brazilian
Steel Institute (IBS), steel sales in the
domestic market, in 2008, dropped
25.8% in November and 33.9% in
December against October. In the
foreign market, product sales also
dropped: in November the reduction
was 23%, and in December 9%.
The alert level was raised in January
2009, when the domestic market
recorded a decrease of 48% in steel
sales and of 52% in steel production. In
a scenario of excessive product offer in
international markets, with consequent
price reductions, ArcelorMittal Brasil, as
well as its controlling group, would not
be safe. However, in the crisis scenario,
ArcelorMittal Brasil proved its strategic
importance for the group, by showing
results that supported the sustainability
of businesses in Latin America.
Nevertheless, these times call for
prudence. Consistent with its controller,
the company has adopted strategies
aimed at enduring difficulties with
minimum impact on performance.
The focus on 3 Cs – Cost, Customer
and Cash – remains our strategic basis
for 2009, which will not be an easy
year. On the other hand, compared
to previous crises, the steel industry
is in a stronger position, reflecting
improvement in fundamentals,
associated with an increasingly stricter
commitment to sustainability, quality
and leadership, which guide the
company’s management in the task of
overcoming barriers to growth.
Investments
In March 2008 before the first signs of
the international crisis, ArcelorMittal
announced an investment plan for
Brazil: US$ 5 billion in five years
intended for maintenance projects
in existing industrial plants and the
increase in production capacity.
The first portion of these resources –
US$ 1.2 billion – are intended to double
the production capacity of ArcelorMittal
Monlevade, located in Joao Monlevade
(MG), with the construction of a new
blast furnace, with capacity for 1.5
million tons/year of pig iron, a new
sinter plant (raising capacity from 1.7
million to 5.7 million tons a year), a steel
mill with capacity for 2.4 million billets
per year (twice as much) and a new
roller, increasing nominal capacity to 2
million tons per year. In July 2008, the
company announced another R$ 1.6
billion investment, aimed at increasing long
steel production by 65%, equivalent to 2.6
million tons per year, with the construction
of two new blast furnaces, with total
capacity of 400 thousand tons; an electric
furnace with capacity for 1.2 million
tons; a ladle furnace for two continuous
castings; a rebar roller with capacity for
520 thousand tons; and a rolling mill with
a 500 thousand tons capacity. With an
investment of about R$ 300 million, the
expansion of ArcelorMittal Vega increases
the productive capacity of hot rolled
galvanized material. The other units in the
process will be expanded accordingly to
reflect the production increment.
Due to shrinking steel markets, as of the
last quarter 2008, the company had to
review the timeframes originally established
for some of the investments. In Joao
Monlevade, conclusion of duplication
work is forecast at 40 months, up from
27, but the project has not been called
off. Regarding the other programs, the
company is waiting for possible changes in
the behaviour of domestic and international
markets before setting new schedules.
Restraint
Due to global financial turmoil,
ArcelorMittal announced a 35%
reduction in its global production in
2009. This reduction, resulting from
the dramatic plunges of prices, aims at
balancing accounts until the scenario
becomes more favourable. In addition,
measures also had to be taken regarding
Organizational Profile
SECTOR CHALLENGES
ArcelorMittal Aços Planos has productive
capacity for 7.5 million tons a year
personnel, but always trying to applied, if necessary, to other units of the
mitigate the impacts of the crisis on company in the country.
employees as much as possible.
Another strategy to face the crisis was
In January 2009, Belgo Bekaert Arames, the implementation of the voluntary
controlled by ArcelorMittal Aços Longos, resignation and voluntary early retirement
entered into an agreement with workers in programs. The company has not yet
the unit in Contagem, in the Belo Horizonte assessed adherence to the program but
Metropolitan Area, for the temporary the action is essential to balance the steel
suspension of labour contracts with up to offer/demand mismatch in the market at
1.3 thousand people. the minimum expense to employees.
The procedure implies cancellation of
contracts for up to one year. During this
period the employees receive 55% of
their monthly salary plus R$765 as an
unemployment insurance granted by FAT
(Worker’s Support Fund). Besides that,
during this period the employees may take
part in qualification programs at no cost.
The success of the bargaining, endorsed by
the assembly of Belgo Bekaert employees,
may turn the measure into a model to be
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil

7 VALUES IN BRAZIL AND THE WORLD

The ArcelorMittal Brasil corporate governance

adopts the necessary good practices to ensure
the Company’s organizational success, in
addition to establishing strategic guidelines
and following business development. The
practices are aligned with the ArcelorMittal
global principles, guided by three values:
sustainability, quality and leadership.

Transparent
Governance
 SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
8
Aé
Paulo Geraldo de Sousa receives the
Minas Gerais Award on Environmental Management
from State Governor Aécio Neves
Values
The ArcelorMittal operation
is underpinned by three main
values:
• Sustainability – We are committed
to the world around us beyond the basic
aspects to include the people in whom we
invest, the communities we support and
the world in which we operate. This long-
term approach is central to our business
philosophy.
• Quality – We look beyond today to
envision the steel of tomorrow. Because
quality outcomes depend on quality
people, we seek to attract and foster the
development of our talents to deliver
superior solutions to our customers.
• Leadership – We are visionary
thinkers creating opportunities every day.
This entrepreneurial spirit brought us to
the forefront of the steel industry. Now,
we are moving beyond what the world
expects of the steel industry.
In Brazil
and the world
The ArcelorMittal global corporate
governance model goes beyond
the formal requisites internationally
established for sustainable corporate
management. In the relationship with
stakeholders, in the scope of the board
of directors, in internal and external
policy making and execution, and in the
strict behaviour standards required of
employees at all levels, the company
has ethics, transparency and quality as
premises.
At the top of the managerial structure
of the group worldwide is the Board
of Directors, responsible for overall
decision-making. Below it is the GMB
(Group Management Board), led by
Lakshmi N. Mittal – who is also CEO for
the group, consisting of eight executive
officers responsible for leading the
businesses and determining the global
strategies of the parent company
as well as defining and supervising
administrative activities in the countries
where the company operates.
Brazil
ArcelorMittal Brasil has a corporate
governance structure based on the
same principles of ethics, transparency
and quality as those of the controller.
The Company’s Board of Directors,
consisting of eight members elected at
the General Shareholders’ Meeting for
two-year mandates, establishes the
strategic guidelines and supervises the
businesses. The board members also
choose directors, appoint or dismiss
independent auditors, and supervise
the company’s management.
The company also has a Fiscal Council,
an ad-hoc committee, which when
convened is comprised of three to
five members elected at the General
Shareholder’s Meeting and the
Management Board with two to nine
members also chosen by the Board
of Directors. The Management Board
is responsible for running the group’s
businesses in Brazil, discussing any
subject that is not under the exclusive
competence of the General Shareholders’
Meeting or the Board of Directors.
Corporate responsibility principles
extend beyond the boundaries of the
Company, in investor relations and in
the active participation in associations
and other organizations, in Brazil and
abroad, in an ongoing search for courses
of action for the business sector and
particularly the steel industry. The
Transparent Governance
basic guideline is to develop strategies
to supply markets with quality
steel, encourage the socioeconomic
development of the regions where
the organization operates, and cause
the minimum possible environmental
impact with its activities, and whenever
possible, eliminate them in all steps in
the productive process.
Global Compact
As one of the first signatories of
the United Nations Global Compact,
ArcelorMittal Brasil demonstrates
strong commitments to the promotion
of a more sustainable and inclusive
economy, shaped by ethical principles
and socially and environmentally
responsible management.
The Company’s activities are in line
with the ten principles of the Global
Compact, derived from the Universal
Declaration of Human Rights, with the
International Labour Organization’s
Declaration on Fundamental Principles
and Rights at Work, with the Rio
Declaration on Environment and
Development, and with the United
Nations Convention against Corruption.
Communication on the progress of the
ArcelorMittal activities related to the
Global Compact is identified throughout
this report by icons representing the
ten principles.
In Brazil and the world
Millennium Development Goals
In addition to the consistency with
the principles of the Global Compact,
ArcelorMittal – while conducting its
businesses and in the involvement with
employees, their families and society –
seeks to observe the Eight Millennium
Development Goals – or Eight Ways to
Change the World. The body of goals
established by the United Nations in
2000 to add humanization, solidarity
and sustainability to the planet,
whilst not neglecting the economic
development, calls for voluntary work
and comprehensive involvement of the
private enterprise through actions of
corporate citizenship.
In order to attain transforming, long-
time results, the entity’s activities
include the transfer of methodologies
to the municipalities assisted. The
development of citizenship programs
is shared with the communities, the
government and the third-sector
partners, respecting local needs and
regional identities.
For the development of social
programs, the ArcelorMittal Brasil units
receive funds from ArcelorMittal and
invest in partnerships allowing for the
development of projects eligible for tax
incentives. GOVERNANCE >>
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Transparent Governance
IN BRAZIL AND THE WORLD
9

The Global Compact Principles

HUMAN RIGHTS LABOR STANDARDS ENVIRONMENT ANTI-CORRUPTION

Business should Make sure they are Business should Uphold the Uphold the effective Uphold the elimination Business should Undertake initiatives Encourage the Business should
support and respect not complicit in human uphold the elimination of all abolition of child of discrimination support a to promote greater development work against
the protection rights abuses. freedom of forms of forced and labour; and in respect of precautionary environmental and diffusion of corruption in all its
of internationally association and compulsory labor; employment and approach to responsibility; and environmentally forms, including
proclaimed human the effective occupation. environmental friendly extortion and
rights; and recognition of the challenges; technologies. bribery.
right to collective
bargaining;

For additional information on the Global Compact on the site www.unglobalcompact.org

Millennium Development Goals

For additional information on the Millennium Goals, visit http://www.un.org/millenniumgoals

SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil

10 EMPLOYEE PROFILE PEOPLE MANAGEMENT PROFESSIONAL DEVELOPMENT HEALTH AND SAFETY

The appreciation of people, satisfaction, professional

and human development, and fair compensation to
employees are the main principles guiding the Human
Resources policy at ArcelorMittal Brasil. With 15
thousand employees, the company is an employer
of reference, capable to attract and retain talents, as
well as to develop a strong entrepreneurial guidance
towards performance and results.

Investing in
our people
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Investing in Our People
EMPLOYEE PROFILE
11

Performance

The satisfaction of our employees is

a major requisite for corporate success and
for business sustainability
ArcelorMittal Brasil is one of
the best companies in people
management
Thus, ArcelorMittal Brasil invests in The good indices attained in work The publication highlighted as positive
policies and programs for professional environment quality and satisfaction aspects the scholarship grant and
One of the main challenges at ArcelorMittal Brasil
qualification, as well as in a salary resulted in recognition as one of the investment in personnel qualification –
Human Resources is the valorisation of cultural
policy that is a reference in the country, 10 best companies to work for in Brazil with an average of 100 hours p.a. per
identity as a way to leverage performance. Taking
endeavouring to keep an excellent work according to Guia Você S/A – Revista employee of operational level training – as
seventh place in the ranking of Best Companies to
environment and making everyone Exame 2008 – The Best Companies to well as the differentiated benefit policy.
Work For is a result of this effort.
committed to the culture and objectives Work for. As an improvement opportunity, the
of the Company. equalization of benefits was mentioned
The organization was compared to 550 competitors
For ArcelorMittal Brasil, the result was – especially profit sharing – which varies
from different sectors. From the total, 220 qualified
a reward for the efforts in undertaking from unit to unit.
for the last stage, in which the finalists emerged. “The
increasingly more modern and efficient
150 best ranked are companies that are perfecting
Human Relations practices, as well as
their management according to their business
for the search to align the organization’s
strategy, regional reality and internal public”, says
cultural identity.
the magazine, which relied on the partnership of
Fundação Instituto de Administração, Sao Paulo, to
choose the winners.
Total employees
ArcelorMittal Brasil was also graded above the steel
Year 2005 2006 2007 2008 industry average in the satisfaction survey (“Talk,
Employee category Full time Part time Full time Part time Full time Part time Full time Part time ArcelorMittal”), according to ranking by Hay Group in
Directors 22 0 19 0 15 0 13 0 Brazil. The survey interviewed 12,314 ArcelorMittal
Management 386 0 379 0 247 0 382 0 Brasil employees, equivalent to participation of 97%.
Supervisors 258 0 260 0 352 0 647 0
The company was also highlighted in the survey “The
Administrative 2,319 3 2,343 3 2,417 3 3,293 3
Best in People Management”, jointly promoted by
Operational 7,475 20 7,150 20 6,722 20 10,895 20 Valor Econômico newspaper and Hewitt Associates
Interns 691 52 648 52 363 0 0 764 people management consultancy, finishing third in
Apprentices - - - - - - 0 276 the category “4,000-10,000 employees”. The result
Contractors/temporary 6,694 6 5,817 6 5,634 0 1,263 0 shows evolution, as ArcelorMittal had been fourth in
TOTAL PER SHIFT 17,845 81 16,616 81 15,750 23 16,493 1,063 this category in 2007.
GRAND TOTAL 17,926 16,697 15,773 17,556
Note: due to a new counting of operational employees, there has been a change from the Sustainability Report 2007 (5,893).
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
12
People
management
Over the years, labour practices have
been consolidated at ArcelorMittal
Brasil as a competitive advantage in
A child receives attention at the the attraction and retention of skilled
Dental Prevention Program workers for the Company. Salaries
above the market average, benefits
and encouragement of continuing
professional development foster
professionals’ identification with the
Benefits company and, consequently, they are
more committed.
The benefit package offered to
ArcelorMittal Brasil employees Regarding compensation, a number of
includes: programs evidence the Company’s concern
about satisfaction and, consequently, best
• Meals performance of employees. For instance:
• Health care (hospital, dental, the lower salary paid by ArcelorMittal
ophthalmologic and psychological) Brasil companies in December 2008 was
R$ 741.40, an amount 79% higher than
• Sick leave complement
the country’s minimum wage in the same
• In-company doctor’s offices period, R$ 415.
• Financing and loans*
• School kit for children of
Career Plan
employees in elementary and
secondary school* In the scope of career plan, a succession
• Free basic medicines* program is developed for all management
• Private Pension Plan positions, from the production line
• Day-care grant to the management board, therefore
• Group life insurance ensuring concrete promotion possibilities
• Grants for professional
specialization; language courses Ratio of average salary (men/women)
and school education (Primary, Long and Wire
Secondary and College) Directors 1
• Transportation Management
• Uniform Administrative
Production
Trainees
* Benefits not offered in all units
Apprentices
Interns
1. There are no female directors
2. Includes only ArcelorMittal Tubarão
Investing in Our People
PEOPLE MANAGEMENT
Galvanization, Unit of Sao Francisco do Sul (SC)
within the organization. Employment
opportunities are also offered in all
countries where ArcelorMittal operates,
translating as impulse for professional
development. Education and professional
qualification programs include agreements
with language schools and mechanics
and metallurgy courses, and employees
attend frequent programs in prevention
of accidents and diseases related or not
to work.
The Company has also identified
improvement opportunities in feedback
and coaching. The evaluations “The Best
Companies to Work for”, “The Best in People
Management” and “Talk, ArcelorMittal”
identified this point as a reason for employee
dissatisfaction.
Performance management (GEDP)
Pension Plans
The cornerstone of the Human Resources strategy – basis for
ArcelorMittal Brasil and ArcelorMittal
continuous improvement and the group’s business strategy – is
Aços Longos offer employees two
complementary pension plans, managed
the Global Executive Development Program (GEDP), a program for
by Bradesco Vida e Previdência. Both people development and alignment of leadership competencies.
seek to contribute to improve life quality
of employees, even after they leave the GEDP assesses performance and potential aimed at:
Company. OUR PEOPLE >>
• Identifying talents for leadership positions
• Elevating the organization’s competence level
Flat 2 • Planning career and succession
0 Directors 1 0 • Developing future and present leaders for the organization
1.48 Management –
1.26 Administrative 1.03 It is a space to discuss every aspect of people management and
1.18 Production 1.29 their careers.
0 Trainees 1.00
0 Apprentices 1.00
0.10 Interns 1.00
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Investing in Our People
PEOPLE MANAGEMENT
13

In 2008, ArcelorMittal Tubarão promoted the program for the Qualification

of People with Special Needs living in the local community. HR coordinated
preparation for training and professional qualification. Over the year, ten of
these professionals were taken on.

Upon retirement, ArcelorMittal Aços Planos uses the remuneration.

an employee may Funssest Closed Complementary Pension Employees – per age group
receive up to 70% Plan, offering four plans: three with The employee and the Company Category Up to 30 years 30-50 Above 50 years
of their current defined benefits – not open to new contribute with the same percentage. Directors 0 1 10
salary in addition participants – and one with defined At the end of 2008, the estimated total of Managers 3 227 98
to the Social contribution – open to new participants. obligations was R$ 24 million, kept by the Superior 532 1,226 279
Security pension Company’s cash flow. Administrative 383 363 78
The Free Benefit Generating Plan (PGBL) Supervisors 96 370 84
considers monthly contributions varying Leisure Operational 3,163 4,653 667
from 1% to 9.5% of salary, according to Total 4,177 6,840 1,216
the employee’s salary. The Company and ArcelorMittal Brasil employees enjoy
the employees contribute with the same clubs and associations focused on
amount. Upon retirement, the employee sports and leisure. In Minas Gerais, Employees – per ethnic group
may receive up to 70% of the current salary Clube do Ipê, founded in 1959,
Declared ethnic origin Indigenous White Black Yellow Mulatto Not attributed
added to the Social Security payment. The became a meeting point for the group’s
Directors 0 9 0 0 2 0
benefit is variable because it is based on the employees.
Managers 1 242 1 1 83 0
total contributed by both parties throughout
Superior 1 1,442 21 9 554 10
the contribution period. At the place, club members (including
retirees and interns) enjoy a number of Administrative 0 380 27 2 268 0
The Defined Benefit Plan (PBD) determines sports activities, including gymnastics and Supervisors 0 232 19 1 297 1
the monthly amount to be paid to the team sports. There is infrastructure for Operational 1 3,390 751 6 4,475 5
employee when he leaves the Company, events, a party parlor, an informal, casual
with a ceiling of 70% of the current salary bar, and a kiosk for barbecue parties.
Employees – per gender
added to Social Security contribution, with
monthly contributions limited to 10% of In Espírito Santo, Aest, founded in Category Male Female
their remuneration. 1978, has approximately 3 thousand Directors 11 0
club members. The association provides Managers 304 24
Both in PGBL and PBD, the resources to members with a wealth of leisure and Superior 1,544 493
be contributed by the Company come entertainment options, and enjoys an Administrative 392 285
from the cash flow, and not from a excellent position in the ranking of all Supervisors 535 15
specific provision. In 2008, ArcelorMittal sports clubs in the State. Operational 8,099 531
contributed R$ 8,529,808.69 to
complement PGBL and R$ 5,859,302.77 Members may be current or retired
to PBD. employees with ArcelorMittal Tubarão Total employees with special needs
and FUNSSEST plan participants. Their Category Hearing Physical Mental Visual Total
Without the participation of a direct dependents are also eligible to Managers 0 1 0 0 1
management fund, the contribution enjoy the club facilities.
Administrative 3 10 3 3 19
varies from 1% to 9.5% depending on the
Operational 4 16 0 1 21
Others 1 24 2 0 27

Note: Figures do not include Belgo Bekaert Artefatos de Arames

SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Investing in Our People
PROFESSIONAL DEVELOPMENT
14

ArcelorMittal
Competences

KEY COMPETENCES
• Change Management
• Decision-Making
• Results-Orientation Professional
• Strategic Thinking
• Teamwork Development
COMPETENCES THAT WILL HELP
BUILD THE CORPORATE CULTURE ArcelorMittal Brasil endeavours to The survey pointed out the effectiveness Two initial steps were taken in the developing specific skills and competencies
OF THE NEW ORGANIZATION continually improve its practices of actions related to safety and health, meetings to plan training: defining and for the execution of their activities.
• Stakeholder-Orientation for assessment, recognition and as well as of policies aimed at reinforcing differentiating communication, feedback Another important tool is the On Line
development of the internal public. the identification of employees with the and coaching; and analysing the market’s Training Center, a distance-learning
• Effective Communication
Through surveys on the workplace company and the relationship with the best practices. gateway offering over 3 thousand courses
• Learning and Development environment, the Company identifies external public. in its grid – in 2008, nearly 2 thousand
opportunities for improvement and In its production units, ArcelorMittal Brasil employees participated in such training,
Management challenges works to ensure conditions that On the other hand, the results indicated also offers employees technical-functional in areas ranging from steelmaking and
•H
 ow to attract, retain and will provide more quality of life and the need to advance in some aspects of formation, focusing on improving and finances to language courses.
satisfaction to the entire body of people management, such as career-
develop talents
employees. As an example is the enhancing and effort-recognition
• How to think and plan Organizational Climate Survey – Talk, policies. Below expectations were the DEVELOPMENT>>
strategically ArcelorMittal –, held in May 2008. indexes of Managerial Style, involving
• How to keep a high aspects such as “Performance Planning
performance atmosphere It was the first time the survey & Development” and “Recognition &
was standardized throughout all Reward”, with general average of 62%
• How to improve customer ArcelorMittal Brasil. Previously, the – indicating the need to perfect the
satisfaction survey had been conducted in separate programs for leadership formation and
• How to manage time and stress ways for different units. The general qualification.
Talk, ArcelorMittal Survey – indicators of favourable perception
favourability index was 70%, indicating
• How to remain ahead of the that the Company is on the right Existing qualification programs such as 87%
competition track in its quest for excellence in its GEDP and Transform Now encompass
79% 79%
77% 77%

• How to align strategic vision
and commitment
• How to keep the balance of
work and personal life
• How to improve internal
processes
• How to encourage innovation
organizational climate.
This favourability index is 11% higher
than the Hay do Brasil market composite
index and 7% higher than the steel
industry composite. With this result,
ArcelorMittal Brasil is placed in the so-
called third quartile, that is, the results
are among the best in the database of
Hay Group, a global consulting firm in the
business management area.
such topics. There are other training
programs with the same focus.
The identified problem is that, in spite of
qualification, there is little internalization
of concepts. On these lines, ArcelorMittal
Brasil developed the project Culture Labour Credibility Principles Clarity and External
Safety and Values Strategy Relationship
of Effective Feedback, as part of its
Alignment
HR strategic business plan, aiming at
promoting management qualification in the Note: The survey was answered by 97% of the personnel and followed a Hay Group methodology that assures
task of giving feedback to team members. total confidentiality to participants.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
15
Transform Program
The actions to form leaderships more
aligned with the Company’s culture
and strategic orientation started
to be embodied in 2008, with the
implementation of the Transform
Program. The initiative consists of
a series of internal procedures with
the objective of developing people
and producing sustainable results, by
offering support to the continuous
improvement and update of managers.
Employees participate in workplace exercises in Piracicaba The idea is to prepare managers not
only to overcome the challenges of
movement within the group, such as
retirement and creation of new leadership
positions, but also to put into practice
plans for development and growth of the
Competence axes
Technical-Functional
Behavioural
Management Conceptual
Instrumental
organization, employees and business
units. Developed based on organizational
competences and major management
challenges, as defined by ArcelorMittal,
the Program is intended for people holding
or to hold leadership positions.
To attain its objectives, the Program was
structured to comprehend four axes of
competence distributed in development
topics, leading to the construction of a
curricular grid connected with time and
management scopes. The development
plan is individual and established for
each manager, according to their current
position and estimated future position.
In view of this, the qualification need
emerges from the results of the
performance management compared
Internal auditor course at ArcelorMittal Vega
to what is required for the current
position, from the succession perspective
compared to what is required for the
future position, and from the result of the
performance and potential assessment,
that is, the projections of potential for
future positions.
In 2008, the Transform Program
executed its actions using the most
advanced learning methodologies, such
as the coaching program, encouraging
networking, and training in the
classrooms of renowned institutions such
as Fundação Dom Cabral and Hay Group.
Transform Program - statistics
Total
Total employees trained
Total hours delivered
Total classes
Investing in Our People
PROFESSIONAL DEVELOPMENT
In total, 3 thousand hours of training
were provided to 750 participants with
total investments of R$ 1,418,775.67.
The Program is also supported by the
Corporate ArcelorMittal University,
with courses for growing the future
leaders of the Group. In the period
2007-2008, eighteen leaders from
Brazil and South America attended such
training and, in addition to improvement
in management knowledge, they
had the opportunity for networking
with ArcelorMittal professionals from
different units across the world
Actual 2007 Planned 2008 Accomplished 2008
341 770 753
2,038 3,588 3,130
24 52 45
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
16
Investing in Our
People
Health and Safety are priorities for
ArcelorMittal around the world and are
strengths of ArcelorMittal Brasil. In all units
– industrial and administrative – proactive
policies are applied to value the physical
and mental integrity of direct and indirect
employees, as well as to supervise their
activities so as to identify and prevent
problems and to correct procedures.
Employees undergoing periodic health exams
The schedule of routine activities
Health and Safety in Figures includes attention tests before starting
work for machine operators in all
• Rate of injuries: 2.63 (includes minor units. Constant individual performance
injuries with basic first aid) evaluation of workers is performed,
regarding accident prevention and safety
• Rate of occupational diseases: zero
workshops, in all units.
• Rate of lost days: 15.33
Specific management systems, with
certification based on Occupational Health
and Safety Assessment Series (OHSAS)
criteria, focusing on occupational health
and safety, make use of communication
Evolution of absenteeism tools, training, and diversified strategies for
1.10 employee involvement to ensure low levels
0.94 of occurrences and significant reduction of
0.89
accident risks.
0.69
The Internal Committees for Accident
Prevention (Cipas) are present in all
companies in the group, representing
100% of the employees, who are also
2005 2006 2007 2008
formally represented in the health and
safety committees.
Health and Safety Day
The two main objectives of the Health
and Safety Day carried out annually in all
units throughout the world are to involve
and commit ArcelorMittal professionals
at all levels to health and safety principles
and to demonstrate the company’s
commitment to all employees.
In 2008, the theme was “Together a step
forward towards safety”, aiming at equal
involvement by all professionals, regardless
of their positions, with the best safety
practices in the workplace.
The idea is to share experiences and
practices among people, areas and units,
emphasizing the sensitization of the
leaders on the importance of leading by
example.
Brazilian employees from all units
could watch videos with a speech by
ArcelorMittal CEO, Lakshmi Mittal, and
by Brazilian leaders in the long and flat
segments.
Employees visited the Health Circuit
for blood pressure tests and measuring
weight, height and BMI; and glucose and
cholesterol tests. In some units, they
received massages to potentialize their
well-being and relieve stress, in addition
to enjoying auricular therapy and foot spa,
among other activities.
Investing in Our People
The event also focused on activities and
discussions on fatality-causing agents,
developed from activities held at the
units such as work at height, in high
temperatures and with electricity, among
others.
Safety Committee
The ArcelorMittal Brasil Safety
Committee is responsible for developing
the respective topics at the Operational
Units. The objective is to contribute to
the target of having zero accidents and
injuries by setting up projects, campaigns,
audits and standardizations in compliance
with the guidelines of the ArcelorMittal
Global Safety Committee. On these lines,
the Committee seeks to identify, assess
and reduce operational risks.
The topics discussed by the Committee
aim at guaranteeing the continuous
improvement of People’s Quality of Life, by
promoting safety. No corporate decision
is made without being discussed at
Committee meetings.
The meetings follow an agenda with
representatives from all business
segments and focus especially on
evaluating annual planning, as well as
the identification and sharing of good
practices, follow-up of safety tours to
operational units, and consolidation of
safety campaigns and dissemination
of the safety standards of Global
HEALTH AND SAFETY
ArcelorMittal.
There is also a health committee
gathering professionals from the entire
ArcelorMittal Brasil, working under the
same model as the safety committee.
Assessment of individual safety
performance
All units with ArcelorMittal Aços
Longos conduct individual safety
performance evaluation of employees.
Indicators such as previous accident
records, time in the company,
absenteeism, and suggestions for
improvements of risk conditions are
taken into consideration.
Based on the review, employees are
classified in one out of four categories:
ideal situation, motivation for reporting
unsafe conditions, alteration of position,
and critical situation.
After being classified, the professional
undergoes a specific process, aiming
at ensuring the safety of activities. For
instance: if the employee is classified
in “motivation for reporting unsafe
conditions”, the process endeavours to
create in that employee the culture of
communicating any situation deemed
inadequate in terms of safety.
HEALTH AND SAFETY>>
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
17
Employees, Unit of Cariacica (ES)
Safety Workshops
and Meetings
In addition to safety reviews,
ArcelorMittal promotes periodic
meetings of managers and
operators from production
areas. At these meetings, safety
indicators of units are presented
and critical situations in each area
are discussed.
This is another opportunity
to record reports of near-
accidents or anomalies, and
for the development of ideas
for improvement. Based on
the reports of these meetings,
specific actions are programmed
for each sector. These actions
are the result of a process
characterized by the interaction/
proximity between managers and
operators.
Systematic investment, continuous
improvement and a great result: eight
years with no lost time incidents
Zero accident
Ongoing measures, such as individual
performance reviews, safety
workshops and meetings, in addition
to seminars and competitions
dedicated to the topic ensure
excellent figures to ArcelorMittal.
Belgo Bekaert Arames, in Itaúna,
MG, is a major Health and Safety
highlight in the group. The unit, with
130 employees, has no report of a
single lost time incident since 2000.
The indicator is the outcome of a
work started 11 years ago, when
the company started to hold periodic
seminars on safety and to develop
plans for risk reduction, based
on information on the individual
performance of employees.
In the same unit, a project to reduce
noise level has been attaining
significant results since 2006.
Through constant monitoring of
the volume of decibels emitted
by machinery, specific and global
measures were and are still being
adopted to reduce these indices, with
layout changes in the industrial plant
and the acquisition of new equipment,
thus making the workplace healthier.
In June 2008, another ArcelorMittal
Brasil unit celebrated the milestone
of seven years (or 2,557 days) with
no reports of lost time incidents: the
Seedling Production Unit (UPM) in
Ponte Alta, ArcelorMittal Forests, in
Dionísio, MG. To celebrate and value
the importance, a party was held with
a theatrical performance and music
composed by employees.
Activities in UPMs are quite different
from other units in the Company.
Employees are exposed to risk due to
factors such as electricity, contact
with poisonous animals, handling
dangerous equipment and bad
weather conditions. However, the
measures adopted by management in
partnership with employees increased
the commitment of all to safety, and
there were no further occurrences. In
the case of ArcelorMittal Vega, there
are no records of lost time incidents
after November 2007.
Investing in Our People
Employees go through the rebar production in Piracicaba (SP)
Safety as a value of the company
To encourage change in behaviour of
employees, making health and safety
fundamental and intrinsic values to
the organization. These are the main
purposes of the Health and Safety as a
Value campaign, set up by ArcelorMittal
Brasil in its units. The project consists
of a number of coordinated actions
aiming at diagnosing the situation of
each unit and their level of maturity
on the subject, preparing and carrying
out specific behavioural action plans
for direct and indirect employees, thus
significantly reducing work-related
accidents.
In 2008 the three-staged campaign
was started in some units such as
Cariacica (ES). At the first stage,
Sensitization, lectures are delivered
to managers with ArcelorMittal or
contractors on work methods and
objectives. At the second stage,
HEALTH AND SAFETY
Diagnosis, the same managers are
asked to fill out questionnaires on
health and safety in their areas,
and employees who have already
had accidents are interviewed. All
operational employees also answer
questionnaires.
The next steps are investigations of all
accidents which occurred at the unit/
sector over the last four years and
the follow up of high-risk activities.
Next, the information gathered by
the survey is analyzed and a report
is produced to determine the degree
of maturity of the Unit regarding
risks and accidents. The last stage,
Guidance, consists of the submission
of final reports – one for each area
–, of a qualification program on
“Risk perception” for managers, the
formation of homogeneous risk groups
and the preparation of action plans.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil

18 WATER ENERGY TRANSPORT / MATERIALS EMISSIONS WASTE BIODIVERSITY SANCTIONS / ENVIRONMENTAL EDUCATION

ArcelorMittal produces a complete spectrum

of flat, long and stainless steel products to
meet the current needs of all main consumer
markets. Steel is the material of choice for
environmental protection, not only for being
environmentally sound, but also for having a
performance superior to other products as it
is immediately recyclable.

Making
steel more
sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
19
ArcelorMittal Brasil environmental management
monitors biodiversity around operational units
Sustainability as a
Differentiating Factor
In analyzing possible strategies to
face the current economic scenario,
ArcelorMittal reinforces its vision
that sustainability remains an
important differentiating factor for
business success. On these lines,
the Brazilian subsidiary – which
maintained award-winning eco-
efficient programs in 2008 for
carbon credit trading, water reuse
in industrial units, industrial waste
management and rational control
of natural resources by suppliers
– foresees the continuity of such
actions.
To ensure the balance between
industrial activities and the rational
use of natural resources, the company
develops processes aiming at the
lowest possible impact on biodiversity
in the vicinity of its units, the constant
search for updating its facilities,
the recirculation of almost all used
water, and the recycling of the waste
generated in steel production, in
addition to promoting ongoing projects
for the environmental education of
internal and external publics.
In order to reduce and even eliminate
the environmental impact of its
ArcelorMittal Brasil
Environmetal investments
R$ 38.058.746,00
Total
R$ 59,719,075.58
R$ 21.629.733,00
R$ 30.596,58
Prevention and Environmental
environmental
Mitigation of
Protection
management impacts
industrial activities, ArcelorMittal Brasil
makes use of a series of management
and operational tools, based on the
principles defined by its controlling
group. In addition to complying with all
environmental laws and regulations, the
company has environmental management
systems such as ISO 14001 certification.
In 2008, the excellence of ArcelorMittal
environmental practices was recognized
by important awards. The Juiz de
Fora unit, for instance, received the
Minas Gerais Award on Environmental
Management, awarded by the Brazilian
Quality Union (UBQ) to distinguished
companies for the management of the
impacts of their activities.
ArcelorMittal Brasil strives for
continuous improvement of its
environmental performance,
systematically monitoring its activities
aiming at preventing pollution. It
also develops, perfects and applies
methods for low environmental impact
by making use of locally available raw
materials, favouring the production
of environmentally correct products,
focusing on their use and subsequent
recycling and, wherever technically and
economically feasible, promoting the
management and reduction of CO2
emission sources.
Making Steel more Sustainable
Steel Cycle
COAL AND ORE
SCRAP
PROCESSING
STEEL SCRAP
CONSUMPTION OF GOODS
Source: Brazilian Steel Institute (IBS)
Process improvement
Steel is a 100% reusable product
being indefinitely recycled without
losing quality, and keeping unchanged
characteristics of strength and
hardness. According to the American
Society of Civil Engineers (ASCE),
steel scrap recycling reduces by 90%
the generation of mineral waste; by
90% the consumption of natural raw
materials, and by 70% the energy
required to produce new steel. By
2007, steel recycling represented
40% of the entire industry of ferrous
materials.
Always acting to ensure customer
safety, ArcelorMittal Brasil provides
information on its products in a
transparent, objective manner.
Products are shipped to customers with
a Quality Inspection Certificate, which
PROCESS IMPROVEMENT
LD STEELWORKS
ELECTRIC
STEELWORKS
FLAT AND LONG PRODUCTS
SCRAP
PROCESSING
contains information on chemical
composition, mechanical properties,
size and weight of products, and non-
radioactivity certificate.
Product packaging is made of
recyclable steel bands that may be
reused by our customers. Products are
identified with labels containing legal
information and allowing for their total
traceability.
In 2008, there was a single case of
non-compliance. Inmetro imposed
five sanctions on ArcelorMittal Brasil
for understanding that some nail
packages presented lower weight than
stated on the label. An action plan was
implemented, with the installation of
an automatic control system to weigh
nail bags, and the deficiency was fully
corrected.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
20
Water
For ArcelorMittal, the efficient use of
water is high priority in its productive
processes. With programs to reduce
effluent discharge, the company
improved the rationalization of water
resources to the point of reusing
practically all of the water used
in industrial processes – average
recirculation reached 98.12% (taking
into account the Industrial Units of
Cariacica, Juiz de Fora, Monlevade,
Piracicaba, Tubarão and Vega).
The attained results help establish a
benchmark for other industries and
contribute significantly to reduce costs at
the company. Finally, the funds previously
spent on treatment of effluents are
now directed to new projects, therefore
increasing the company’s investment
capacity.
In 2008, the units of ArcelorMittal
Cariacica (ES), Juiz de Fora and João
Monlevade (MG) and Piracicaba (SP)
presented effluent discharge lower than
0.06 m³/t of raw steel. The Monlevade
Unit is distinguished for reducing collection
at the Piracicaba River from 5.2 thousand
m³/h to 287 m³/h between 2005 and
2008, after the recirculation process was
started, reaching a 99.1% rate.
Belgo Bekaert Arames, in Contagem
(MG), collects rainwater from roofs
for the cooling system. The procedure
reduced the consumption of safe water
supplied by the local public utility by
approximately 5 million litres/year,
enough to supply a 40-apartment
building for about six months.
At ArcelorMittal Tubarão, the Reuse
Project aims at reducing the acquisition
of water from the local Espírito Santo
public utility (Cesan), even with
production capacity increasing from 5
million to 7.5 million tons of steel per
year. With capacity to collect and store
720 m³/h of rainwater, the system is also
prepared for the treatment of industrial
effluents and rainwater. In 2008, the
average reuse rate was 229.3 m³/h of
water from the drainage channel, which
was formerly discharged into the sea.
Another eco-efficient measure is water
recirculation in the washing system
of the truck and machine repair &
lubrication shop. The system not only
reuses 100% of the water required in the
process but saves R$ 64 thousand per
month – including costs with discharge
and acquisition of detergents and
degreasers. The investment is expected
to be returned in 30 months.
The water recirculation system at
ArcelorMittal Vega allows for a reuse
rate of 98.5%, a benchmark for other
companies in the same industrial
segment. In 2008, the company attained
the milestone of only 0.41 m³ of newly
input water per ton produced, 40%
lower than in 2004. The practice – a
benchmark for the industry – is to be
extended to other units to reduce costs,
reduce the acquisition of water, and
extend the life cycle of bodies of water.
Making Steel more Sustainable
Water
Aerial view, Port, ArcelorMittal Tubarão
Efficient use
ArcelorMittal Tubarão uses
approximately 5% of fresh water
from the Santa Maria da Vitória River
(2,461 m³/h), whose collection and
delivery is made by the state public
utility (Cesan). The other 95% comes
from the sea, collected by an own
pumping system. Even with increased
production, the company has been
maintaining the required volume, thus
not impacting the source that supplies
the Greater Vitória area (ES).
In the case of ArcelorMittal Vega,
water management was subject to
a study jointly conducted with the Total water consumption (m3/year)
local utility Casan – responsible for
collection and delivery. It was defined collection at the Piracicaba Unit. With a
Surface water 421,673,376
that the source should be different technological investment of about US$
Underground water 802,713
from the water springs that already 20 million, the company replaced the
water storage tanks used for cooling Collected and stored
supplied the local cities. The selected 5,020
rainwater
source was Baden Meyer brook, a steel, eliminating water waste due to
Public utility supply 801,345
tributary to Saí-Mirinzinho River, in the overflowing.
Total
continental part of São Francisco do (sea water + fresh water)
423,282,454
Sul. The studies developed by Casan With this action, water consumption
determined the maximum volume to be remained unaltered even with production
collected in order not to compromise doubling to 1 million tons of rebars per
the Baden Meyer brook flow. Currently, year. Specific consumption is 1.26 m³/t,
the volumes collected by the company lower than the global steel industry
(39.6 m³/h) are significantly lower than average of between 1.8 m³/t and 2.5
the authorized by the environmental m³/ t of steel. It accounts for savings of
agencies in the operation licensing over 471 million litres of water, a volume
(79.2 m³/h). enough to supply the entire unit working
at full capacity for four and half months.
Research is still underway at
ArcelorMittal Aços Longos to report on WATER >>
the impact of its collection on water
bodies more precisely. However, it
is worth highlighting the project for
volume reduction in surface water
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
21
Effluents
ArcelorMittal Brasil endeavours to
minimize the impact of water discharge
with ongoing investment in proper
effluent discharge systems.
At ArcelorMittal Vega, effluents are
treated at a station furnished with
equipment for chemical-physical and
biological analyses and tests, in addition
to a disinfection process using ultraviolet
rays. Living organisms undergo an eco-
toxicity verification process (more in
the box). After treatment, effluents are
discharged into the sea through a pipeline
approximately 13 km long, with 600 m
underwater, in the sea. In 2008, 187,134
m3 of effluents were discharged through
this system.
At ArcelorMittal Tubarão, effluents that
are not directed to internal recirculation
(approximately 2%) are treated before
discharge through the drainage channel.
Analysis of
final effluents
BBA Contagem
Total lead 0.05 mg/L
Total zinc 0.36 mg/L
COD 52.63 mg/L
Making Steel more Sustainable
WATER
Ecotoxicological
monitoring of effluents
ArcelorMittal Vega, in São Francisco
In 2008, the average volume discharged benchmark for water resources tank of the steel mill equipment, before
do Sul (SC) – supported by the
by the unit was 871 m³/h, taking management within ArcelorMittal. being reused.
Applied Microbiology Laboratory,
into account the 229.3 m³/h average
Vale do Itajaí University (Univali), and
recirculation rate of the Reused Water The mass of discharged liquid The wire drawing units are innovating
with the consent of Santa Catarina
Treatment Station operating over 12 effluents consists especially of water resources management with
Foundation for the Environment
months. rainwater and sewage water, which increased indices of water recirculation
(Fatma) – developed an innovative
otherwise would be discharged into and use of rainwater as make-up water.
project to monitor the eco-toxicity of
Sea water, which is also used by the the public sewage system.
the effluents generated by its industrial
company, is collected by its own pumping At Belgo Bekaert Arames, in Contagem
production.
system and is returned by a long canal A highlight is the Cariacica steel mill: (MG), the water recirculation rate
allowing for heat exchange with the the reuse of sewage and rain water reached 98%. The company also reuses
Analyses of two microorganisms
atmosphere, thus keeping temperature eliminated the discharge of effluents 15% of the treated effluent. In the year,
determined by the environmental
within the legal limits for discharge. into the environment, and saved 30% the company discharged 262,356 m³.
legislation for use in the monitoring
due to lower purchasing of water.
process – micro-crustacean Daphnia
The drainage channels are connected to It is worth stressing that ArcelorMittal
magna and bacteria Vibrio fischeri
a retention dam, keeping effluents for With an investment of R$ 11,635.00 Brasil does not receive liquid effluents
– indicated that the former was
approximately three hours in a stabilization a physical barrier was built for from other organizations.
inadequate in the control of effluents
pond before discharge. Excess rainwater retention and decantation of the final
discharged into the sea, as it is less
from the water collection system is also effluent at the unit. After the process,
sensitive to detect toxic elements.
directed to the channel system. the effluent is conveyed through a
siphon system for filtering before
After laboratory tests with ten species,
The ArcelorMittal Aços Longos reaching the main tank. Next, the
during a year, marine micro-alga
steelworks are now considered a water is stored at the cooling system
Skeletonema costatum proved to be
more sensitive in the eco-toxicity
analysis and replaced Daphnia in the
effluent monitoring process. In 2007,
Fatma issued a technical opinion
authorizing the replacement. The
toxicity standards for monitoring were
ArcelorMittal Tubarão ArcelorMittal Vega also defined, although the results were
already in compliance with established
pH 8.3 pH 7.52 international standards.
Oils and greases < 5.0 mg/L Total cyanide < 0.01 mg/L
Total phenol 0.01mg/L Oils and greases Due to the positive results and the high
13.0 mg/L
Suspended solids 22.8 mg/L
Total phenol < 0.001 mg/L
sensitivity detected, there is a study to
Total zinc 0.007 mg/L include Skeletonema in the existing law,
Suspended solids Not monitored
Temperature 31.1 °C thus creating compatible parameters
Total ammonia nitrogen 0.66 mg/L for all companies discharging effluents
Total iron 0.65 mg/L
Total lead 0.008 mg/L Total zinc 0.16 mg/L into the sea.
Total manganese 0.021 mg/l Temperature 24.79 °C
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Making Steel more Sustainable
ENERGY
22

Energy
ArcelorMittal Brasil has been successful
in its initiatives to improve energy
efficiency in its industrial processes.
For the second year running, the
company managed to report reduced
energy consumption while increasing
production. More than that, the
company used the opportunity to
market excess energy equivalent to
9,149,148 GJ (including electric
energy, oxygen, nitrogen and argon).
ArcelorMittal Juiz de Fora managed to
reduce charcoal consumption in blast
furnace tops by using a charcoal fines
injection system. With this system, total
energy savings reached the 353,722 GJ
mark. ArcelorMittal Florestas, in turn,
has a research under development to
use the methane released during wood
burning for energy generation.
At ArcelorMittal Tubarão, the reuse
of effluents in the mill produced total
energy savings of 3,756 GJ, equivalent
to approximately 2,012 Dam³. Among
the initiatives in the area of energy
at ArcelorMittal Tubarão, it is also
worth mentioning the production
maximization at more efficient air
separation plants and electric energy
generation plants.
Another measure taken after a study
was to reduce hot rolling speed from
2 m/s to 1 m/s, representing a 52%
reduction in energy consumption, with
monthly savings of 160 MW/h.
Turning off lights in warehouses and
cooling water recirculation pumps
when not required for operations,
produced cost reductions of up to
R$ 6,083.00/month in the Slab
Conditioning area. In areas used by
employees, simple measures taken
to reduce undue use of equipment
produced a R$ 13,392.81 reduction
in expenses in the high voltage sector,
and R$ 1,992.67 in low voltage,
as well as better use of labour and
material resources. ENERGY >>
Efficiency generates R$ 20
thousand in cost reduction
The efforts of the ArcelorMittal Sistemas
team to reduce energy consumption
resulted in savings of about R$ 20
thousand in the December 2008 electric
energy bill as compared to the previous
month.
The unit – specialized in IT resources
management – held an internal campaign
to eliminate unnecessary uses, mobilizing
the unit in November. Studies were also
carried out on energy consumption at
ArcelorMittal Sistemas, in partnership
with Cemig technicians.
The result was an energy bill for R$ 48.1
thousand, against R$ 68.3 thousand for
November 2008, with about 1.5% more
in active energy.

Evolution - direct energy Total energy consumption by ArcelorMittal Sistemas

consumption (in gigajoules) primary source (in gigajoules) electricity bills in 2008

Mineral coal 142,762,238 Bill total Active

Description
Gasoline 10,410 value energy
195,622,470 Diesel 425,587
169,717,465 169,261,487 Fuel oil 119,583 Aug (R$) 63,984.18 (41.63%)
Natural gas 4,395,999
Electricity 19,543,591 Sep (R$) 60,873.92 (39.02%)
Charcoal 353,722
High purity oxygen 1,423,215
Oct (R$) 67,976.33 (38.05%)
Low purity oxygen 53,262
Nitrogen 171,916
Nov (R$) 68,328.94 (37.93%)
Argon 1,964
Compressed air 292,936
Dec (R$) 48,152.02 (39.53%)
2006 2007 2008 Note: Total consumption of direct energy = Direct
primary energy acquired + Direct primary energy
produced – Direct primary energy marketed Industrial unit, Piracicaba (SP)
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
23
Reduction in indirect emissions
In order to reduce its indirect emissions –
those deriving from transportation, travel
or contractors operations – ArcelorMittal
Brasil companies carry forward activities
focusing on the reduction of fuel usage for
transportation.
ArcelorMittal Vega increased the
frequency of maintenance in air-
conditioning systems and air filters of all
buses – from quarterly to monthly – and
tire pressure is now checked every two
days. The opacity of the fleet is now
checked every month.
Light transportation Another measure was aimed at raising
was readjusted the awareness of the drivers loading
and unloading at the company of the
to reduce the
influence of their driving style on fuel
number of vehicles,
thus reducing the consumption, by means of theoretical
consumption of lectures delivered by a Senai instructor
gasoline and diesel oil on Recycling, and hands-on training
with a company instructor with a VCR
installed in the vehicles. In addition,
Fuel consumption
(vehicles)
Total = 6.19 GJ
5.20
0.99
Diesel Gasoline
Making Steel more Sustainable
ENERGY
the Santa Catarina Unit includes fuel
consumption as a target of the Profit
Sharing Program (PPR).
ArcelorMittal Tubarão has contracts with
two transportation companies, Viação
Satélite (collective transportation) and
Vix Logística (light transportation).
The former, providing employee
commuting, used 77 buses in 2008,
consuming 1,387,166 litres of diesel
fuel, a reduction of 84,583 litres when
compared to the amount forecast before
the adjustment in the number of lines
and schedules.
Light transportation, provided by Vix
Logística, was also readjusted to reduce
New logistics reduced freight expenses by 25% in 2008
the number of vehicles, thus reducing the
consumption of gasoline and diesel oil.
Traffic centre generates gains in transportation
Internal vehicles for employee
The ArcelorMittal Aços Longos Traffic Centre has been successful in avoiding
transportation are now fueled with
the so-called “void return”, i.e. trucks coming back with no cargo after customer
biodiesel, which emits less gas than
shipment. This not only generates environmental benefits but also reduces the
regular diesel, is biodegradable, and is
specific transportation cost per ton of steel.
produced from a renewable source.
For this purpose, the company uses a vehicle fleet (not older than five years)
hired in a full-time dedication regime. Therefore, it has become possible to
Reduction in fuel centralize management of demand and increase vehicle productivity through
consumption (vehicles) identification of traffic flow, specification of routes, types and volumes of cargo
and analysis of time frames to complete a cycle.
Total = 0.57 GJ
With predetermined routes, it is possible to establish traceability systems, and
0.35
loading and unloading schedules, as well as rotation of drivers making possible
24-hour operations to serve customers in the best way. In addition, drivers
attend qualification sessions for the best customer services possible.
0.22
On the routes operated by the Traffic Centre, the new operation model produced
freight savings of 14% in 2006, 33% in 2007 and 25% in 2008. With these good
results, the system will be expanded to the flat steel mills and other units.
Diesel Gasoline
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Making Steel more Sustainable
TRANSPORT / MATERIALS
24

The four barges have capacity to carry
Barge for transportation of coils between the units of Tubarão and Vega
9.8 thousand tons of coils each. The
same amount of steel would require the
travel of 300 semi-trailer trucks. For that
reason, the system was qualified as a Clean
Development Mechanism (CDM).
Materials
As part of the investments made by ArcelorMittal
Brasil is the implementation of process adjustments
aiming at the efficiency and maximization in the
use of process-related raw materials.
Within its recycling policy, ArcelorMittal Brasil
consumed 2,425,583 tons of waste or
byproducts resulting from external industrial
sources, equivalent to 12.45% of recycled input
materials. Although there is no specific target for
2009, the amount is supervised in the industrial
production plan.

In spite of the several advantages, an

incident happened on January 30, 2008:
while transporting 9,010 tons of coils, Materials used that are recycled input Materials used by weight
a barge was wrecked next to the access materials in 2008 (in tons) (in thousand tons)
channel to the port of Sao Francisco do Sul.
Total = 6.19 GJ
Acquired scales 16,971
The consequences were not very serious: 19,493,837
17,556,763 17,718,835
the pilot and 11 crew members were Acquired blast furnace slag 113,262
rescued and received medical attention.
The barge capsized and went aground on Acquired steel scrap (local) 1,865,583
a sandbank. The coils remained in the hold. Briquette 2,495
A residual oil spot was observed, but there
were no spills from the tanks. Steel scrap: internal recycling 425,037

Since then, ArcelorMittal Brasil has been Refractory 2,505 2006 2007 2008
following up the case and supporting all
actions necessary to deal with the water.
As a result of the incident, the group is
fighting a lawsuit filed by 103 fishermen Raw materials connected to processing
from the municipality of Itapoá (SC), who
Cleaner recently filed indemnification demands Mineral coal Petroleum coke
against the carrier company that provides Pellets Breeze coke
transportation the service for alleged material losses from
the oil spill.
Limestone / Dolomite Heavy oil
Iron ore Hydrochloric acid
The barges carrying steel coils between Sinter Rust inhibitor
the units of Tubarão (ES) and Vega The service provider indemnified most Coke Caustic soda
(SC), a 1,170-km sea route, not only affected parties, even signing a Conduct Charcoal Sodium thiosulfate
reduce costs in about 60% but they are Adjustment Term (TAC) with the local Scrap metal Defoamer
also a cleaner transportation means, Public Attorney’s Office. The fishermen still EAF electrode Chromic acid
as the coastal navigation system emits in litigation against the navigation company Charcoal for PCI Scale
less greenhouse gases than highway are those who decided not to be included in
Mineral coal for PCI Zinc
transportation. the referred TAC.
Iron alloys and other materials
(Fe Mn AC, Fe Mn Mc, Fe Si Mn, Fe Vanadium, Fe Niobium, Nitrogen Manganese, Copper, Aluminum drop, Fluorite, etc.)
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Making Steel more Sustainable
EMISSIONS
25

Emissions
ArcelorMittal Brasil endeavours to the Environmental Area –, the carbon trade,
reduce its CO2 emissions by analyzing unprecedented for ArcelorMittal worldwide,
and restructuring industrial processes, was executed with the German bank KfW,
whether generating carbon credits or and is worth US$ 5 million.
not. Clean Development Mechanism CO2 emissions by source INDIRECT EMISSIONS
(CDM) programs are, however, included At ArcelorMittal Brasil, other projects aim (tons)
in the Environmental Management at reducing CO2 emissions: ArcelorMittal Tubarão calculated
2007 2008
Policy. The programs are in line with the indirect greenhouse gas emissions
Power generation 194,798 292,205
Kyoto Protocol recommendations and • Cogeneration of electric energy, Heat
Physical-chemical 13,401,398 9,058,798 related only to employee
are related to the reduction of polluting Recovery process
• Cogeneration of electric energy,
processing commuting and business travel.
gases, known as Greenhouse Gases.
steelworks gas recovery Other indirect emissions account
In early 2009, the Company concluded • Transportation of coils by maritime for less than 5% of total emissions
the process for trading carbon credits barges NOx, SOx and other significant air emissions and have not been considered, and
generated by reduced greenhouse gas • Reduction of Methane Emissions at Coal (t/year) have no reduction targets.
emissions, an unprecedented occurrence Producing Units
within the ArcelorMittal Group. The • Injection of Charcoal Fines in Blast Emissions 2008 According to the survey, the
credits – certified by the United Nations Furnace activities in the Espírito Santo unit
NOx 6,235
– were obtained with gas recovery at the • Use of Blast Furnace Gas in the Billet indirectly emitted 5,780,348 tons
SOx 17,356
ArcelorMittal Tubarão steelworks. For 10 Reheating Furnace of CO2 in 2008.
years the process will prevent the emission • Use of renewable biomass in charcoal Persistent organic pollutants (POP) 0.269 (g/year)
of approximately 500 thousand tons of blast furnaces Volatile organic compounds (VOC) 33.58
CO2. Conducted by the Controller’s Office • Forest Producer Program Hazardous air pollutants (HAP) 42.06
– supported by ArcelorMittal Tubarão and Smokestack emissions 1,600
Ozone depleting gases
Fugitive emissions 562

ArcelorMittal Tubarão does not emit the Particulate material (PM) 3,225
gases CH4, N2O, HCFs, PCFs and SF6. In
1999 the company eliminated all sources
of CFC11 emissions. At ArcelorMittal Vega
At ArcelorMittal Tubarão, monitoring
there are no CFC11 emissions either. ArcelorMittal Brasil – emissões de CO2 identified low indexes of indirect emissions
(em toneladas)
During 2008, Belgo-Mineira Bekaert 14.768.826
14.230.684 13.956.196
Artefatos de Arames used in its processes
13 kg of FREON R-22, a liquefied gas used
for cooling. The gas has been gradually
replaced by ISCEON 29, with no ozone-
depleting potential.

2006 2007 2008

Note: Calculations made with ArcelorMittal Group

methodology, following precepts by WISI Balance Site
Employee at the Piracicaba Unit (SP)
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
26
Waste
The ArcelorMittal Brasil guidelines for
management of waste and byproducts
are based on a preventive approach,
continuous improvement and on
principles to minimize generation;
maximize internal reuse, recycling and
sales; and properly dispose of waste
in compliance with all applicable laws.
The company invests in research and
development of new uses for waste
generated in the processes, seeking
excellence and sustainability in steel
production. All these activities are
based on a strict system of industrial
standards to ensure control and efficient
management.
Results in 2008
At ArcelorMittal Tubarão, the waste
reutilization rate in 2008 was 99.66%, a
benchmark for the sector, with 33.16%
recycled or reused, 64.19% marketed,
and the remaining 2.11% treated and
stored at the processing plants for
possible recycling/reuse or sale.
Total revenues with the sales of
byproducts reached R$ 86,017,399.67,
with the evolution of waste sales to
cement and chemical industries, ceramic
producers and railways.
ArcelorMittal Vega does not have a
system for final disposal of waste within
own premises, with the waste being sent
to specialized contractors. Solid residues
are properly packaged in retainers at the
production lines and temporarily stored in
a warehouse, and finally sent to their final
destination after screening.
The final waste disposal method was jointly
determined with CLE Brasil (a company
with Grupo Veolia, directly responsible for
the operation), aimed at the maximum
reuse and recycling, according to
screening, available technology and cost.
The ArcelorMittal Aços Longos steel
producing units reached an average
of 86% waste and byproduct reuse in
2008. Over the year, sales of byproducts
accounted for net revenues of
R$ 22,111,000.00.
At the company, the waste destination
method is determined by the
environmental area of the Industrial Units,
together with the corporate environmental
area and the top management.
From slag to opportunity
Steelmaking slag, an inherent residue
of steel production, has been used as
a tool for social promotion and fight
against environmental degradation by the
ArcelorMittal Brasil business units.
In 2008, ArcelorMittal Tubarão obtained
technical and environmental licenses to
use steelmaking slag as an aggregate for
concrete artefacts and floors. As a result,
the waste has been used for the benefit
of society, to pave roads or to produce
artefacts for civil construction, or even for
more complex tasks such as soil acidity
reduction and filtering in sewage treatment.
There is an ongoing study to use waste
as a foundation for artificial reefs, to
foster the use of marine biodiversity in
sustainable economic exploration and the
preservation of areas as an element in
underwater landscaping. Shellfish farming
may well become another source of
income for local fishermen.
ArcelorMittal Aços Longos endeavours to
develop new projects to add value to its
waste. Below are some examples:
• Agreement with Institute for Highway
Research (IPR), National Department of
Transportation Infrastructure (DNIT) for
tests with slag as asphalt layer base and
sub-base.
• Project for recycling the dust from the
de-dusting system of the ArcelorMittal
Piracicaba electric steelworks, for
production of pre-melted agglomerate
for the electric furnace, therefore
preventing its disposal in landfills and
reducing raw material consumption.
• An agreement with the Federal
University of Minas Gerais (UFMG), for
recycling alternatives for LD steelmaking
sludge from ArcelorMittal Monlevade.
The waste has significant iron content,
and is potentially recyclable for sintering
plants, reducing iron ore consumption and
generating income from the zinc.
• Tests with electric steelmaking slag
Making Steel more Sustainable
WASTE
for use as asphalt layer base and
sub-base, with the Department of
Waste at the yard of ArcelorMittal Tubarão
Highways in Minas Gerais.
For 2009, the target is to
implement the SAP module for
Waste and Byproduct Management,
unprecedented in Brazilian steelworks,
at ArcelorMittal Juiz de Fora. The
system aims at monitoring the entire
waste and byproduct chain generated
by the company, mapping the entire
waste life cycle. WASTE>>
Reuse of steelmaking
slag in figures
• Pavement (paved road base
and sub-base) – 400,000 t since
2005
• Primary coating of rural and
neighbouring roads (REVSOL)
– 700,000 t since 2001 and
230 km of roads with primary
coating since 2006 (New Ways
Programme)
• Railway ballast – 530,000 t
since 2001
• Agriculture (soil correction) –
10% gains in production
• Cement industry – 200,000 t
since 2001
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Making Steel more Sustainable
WASTE
27

Employee uses PPE at ArcelorMittal Vega

ArcelorMittal Tubarão1 - Solid waste
Destination Hazardous Non-hazardous
Tar sludge: 2,198 t Reused industrial waste (sintering): 583,232 t
Reuse ²
Secondary steel mill de-dusting powder: 21,012 t Steelmaking slag reused in internal investment works: 209,090 t
External recycling of batteries: 3.3 t Steelmaking coarse sludge: 63,953 t briquetting
Recycling ³ Light bulbs: 57,000 units Steelmaking thin sludge (sintering + briquetting): 75,751 t
Vegetal oil: 13.44 t Steel slag (sintering): 22,066 t
Reuse at coal piles:
Reuse of lime fine at Sintering Plant: 26,501 t
Recovery Grease: 60 t
Reuse of KR slag at Sintering Plant: 22,066 t
Lubricant oil: 8 t
Oil contaminated with diverse solids: 29.1 t
Clinical waste: 4.96 t
Final disposition in controlled landfill Organic (restaurant): 1,109.35 t
On-board waste (port): 35,610 t
Water contaminated with oil (port): 464,020 t
Plant processing (steelmaking slag, pig-iron making slag, R-BIT industrial waste): 435,000 t
Local storage Zero
CASP – Steelmaking sludge, blast furnace sludge, EP powder: 430,846 t

ArcelorMittal Vega1- Solid wastes

Destination Hazardous Non-hazardous
Reuse ² 0 0
Recycling ³ Lubricant oil, hydraulic oil, emulsions, hardening fluids: 1,142.79 t Scrap metal: 55,790 t Hazardous Waste
Ink cartridges and toner: 0 t Iron oxide: 4,134 t
Grinder sludge: 64.93 t Zinc slag: 802 t
In 2008, ArcelorMittal Brasil
Contaminated empty packaging: 6.30 t Plastic, paper and cardboard: 78.05 t
transported 107,266.4 tons
Mercury lamps 0.72 t
of hazardous waste under of
Recovery Chromium bath: 23.06 t
Electronic material: 6.66 t
Used edible oil: 0.00 m3 terms of the Basel Convention.
Incineration (or use as fuel) 0 Wood: 121.40 t
Sanitary landfill (industrial) Organic waste: 159.06 t
Clinical waste: 1.08 t Rubbish: 45.27 t
Contaminating waste, oil and grease: 21.63 t Iron oxide: 1.121 t
ETS biological sludge: 65.10 t
Others (co-processing) ETS chemical sludge: 484.05 t
Contaminating waste, oil and grease: 47.18 t
0
Degreasing sludge: 3.90 t
Recovered oil: 23.02 t

ArcelorMittal Aços Longos1- Solid waste

Destination Hazardous Non-hazardous
Reuse ²
9,158 1,523,553 t
Recycling ³
Incineration (or use as fuel) 1,1 t 0
Sanitary landfill (industrial) 0 746 t
Local storage 40,816 t 2,471 t
Industrial landfill 17,272 t 22,388 t
1. The company does not perform underground injection of waste. 2. Reuse: a process that does not modify the properties for use in another process. 3. Recycling: a process that modifies the properties and use as byproduct
WASTE>>
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Making Steel more Sustainable
WASTE
28

Destination of hazardous waste

ArcelorMittal Vega
Destination Waste Spills
Co-processing in cement kilns Filter cake; degreasing sludge; used grease; Qwerl sludge; bearing washing; waste contaminated with oil and
grease; chemical sludge from Effluent Treatment Station; contaminated empty packaging In 2008 there were no
Re-processing Chromatization waste; residual acid significant leakages or
spills at ArcelorMittal Brasil
Recycling Ink cartridges and toner; electronic material, contaminated empty packaging,
mercury lamps (with mercury recovery) operational units. The target
Treatment and recycling of oily emulsion waste Recovered oil for 2009 is zero leakage
Lubricant oil refining/ re-industrialization Lubricant oil, hydraulic oil, emulsions, hardening fluids
of any hazardous products
handled either by the
Industrial landfill Contaminated waste chemical product/ paint/ Qwerl/ biocide;
Clinical waste (after autoclave sterilization and grinding) Company or on its behalf.
Processing Grinder sludge
Re-processing and final disposal Chromium bath

ArcelorMittal Aços Longos

Destination Waste
Recycling ¹ Depleted hydrochloric acid; lead soil; used containers; used car batteries; empty 200-liter drums; used alkaline
batteries; used fluorescent lamps
Incineration ¹ Clinical waste; expired reagent/ chemical product/ others; imported wooden boxes without phytosanitary certifi-
cate of origin; used sleeve filter ²
Re-refining ¹ Used oil
Returned to supplier Empty agrochemical packaging 3; industrial towel 4
Co-processing Material contaminated by oil and grease (in clinker kilns in cement industries) 5
Industrial landfills (on-site or external/ temporary storage) Used sleeve filter ²; electric arc furnace de-dusting powder 6
1. In environmentally proper place. 2. Destination depends on industrial units. 3. Supplier ships to environmentally licensed location 4. Supplier performs specific treatment and returns for reuse 5. In environmentally licensed location
6. There is on-site temporary storage..

ArcelorMittal Tubarão
Used oil
Naphthalene absorption oil
Tar
Recycling or external recovery or Tar sludge
disposal in industrial landfill
Grease
On-board waste (port)
The waste reuse rate at
Clinical waste ArcelorMittal Tubarão is
99.66%
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
29
Biodiversity
A major challenge in the steel industry
activity is to mitigate the impacts of
this kind of operation. ArcelorMittal
Brasil invests in the identification
and monitoring of areas with high
biodiversity value within or near its
units. From the studies, information
on environmental impacts is updated,
including the identification of risk
scenarios, determination of remedial
actions and assessment of the
effectiveness of such actions.
Some of the main studies at
ArcelorMittal Brasil is biodiversity
monitoring aimed at identifying species
of local fauna and flora, including a
survey of endangered species in progress
in all units.
In 2008, ArcelorMittal Aços Longos
concluded the avifauna (birds) monitoring
started in 2007. The inventories of fish
fauna and herpetofauna (reptiles and
amphibians) are still in progress to be
concluded in 2009.
In Aços Planos (Flat Steel), ArcelorMittal
Vega analyzed the mammalian fauna,
avifauna (birds) and flora, at the Private
Natural Heritage Reserve (RPPN), a
760-thousand-sqm area surrounding
the company. The study recorded 14
mammal species, 152 wild birds, and
261 vegetable species including trees
and other plants. Among the species
preserved at the place, there are
specimens of Guanandi, the first Brazilian
hardwood, and Ocotea catarinenses, an
endangered species. The second stage –
in progress – is surveying the fish fauna,
entomofauna (insects) and herpetofauna
(reptiles and insects).
ArcelorMittal Tubarão, operating within the
Atlantic Forest – one of the planet’s biome
with the highest biodiversity value – keeps
a Wild Fauna Management Program,
developed to improve the protection of
species in part of its green areas. The
studies include the reintroduction of
animals in existing habitats.
Impact management
Aligned with global guidelines,
ArcelorMittal Aços Longos has legal
reserve areas, Private Natural Heritage
Reserves (RPPNs) and Permanent
Protection Areas (APP). The forest
management areas are monitored by
private security teams and fire brigades.
There is also an agreement with the Forest
Police for their action in case of incidents.
If necessary, the program for recovery
of degraded areas and the emergency
action plan are put in action to recover
Girl observes biodiversity
in Piracicaba (SP)
the original status of areas possibly
affected by industrial operations.
At the Guilman Amorim Hydroelectric
Plant, the Plan for Conservation
of fish species in the area is under
implementation, to be concluded in
2009. In addition, the local RPPN, located
in an Atlantic Forest section with high
recovery interest (Doce River Basin), is
undergoing a systemic management –
including periodical assessment of the
vegetable coverage and fauna diagnosis
–, implemented to accelerate the
recovery of native species.
With annual investments of R$ 79.2
thousand, between 2009 and 2012
Making Steel more Sustainable
BIODIVERSITY
A major study
in progress at
ArcelorMittal Florestas will survey ArcelorMittal Brasil
and monitor vegetation remnants and is biodiversity
vulnerable or endangered plant species. monitoring
The target is to stabilize reforested areas
– environmentally and biologically. The
project’s first stage started in April 2009
and will be concluded in March 2010,
will analyze maps and aerial photos to
identify locations for research.
In 2008, ArcelorMittal Tubarão performed
maintenance services in the Green Belt,
including tree pruning, fertilization and
planting 10 thousand seedlings of several
species, produced at the company’s own
nursery, located in a 1,152-sqm area
next to the company’s Environmental
Education Centre.
BIODIVERSITY>>
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Tornar o Aço mais Sustentável
BIODIVERSITY
30

Aiming at reducing the impact of lakes and a creek. A system of small Although ArcelorMittal Tubarão seem to report the flow of external effluents into ecosystems. In addition, 40 thousand
winds, eucalyptus and acacia trees streams interconnects the central lake be the origin of contamination, studies the unit. Measures have already been sqm of areas used as debris storage
were planted to create a green barrier to another five. Since 2004, hydrological indicate that it actually comes from taken by the agencies to correct the during the construction works were
around the new Slag and Coal Yard next monitoring of the lakes has been performed sanitary effluents from neighbouring problems identified. reforested with native trees, and the
to the Sol Coking Plant and the North to assess physical, chemical and biological districts through bodies of water located remaining areas not used by the mill
Gate of the unit. parameters. The results show different in the districts of Novo Horizonte and At ArcelorMittal Vega, surveys show facilities are covered with vegetation.
levels of pollution in the water of the two Habitar Brasil. In 2009, the target that the number of species and animal
Another particularity of the Espírito lagoons, impacting not only the others, but is to contact the Serra Municipal specimens has been increasing in recent The largest impact on biodiversity
Santo unit is the basin formed by eight also external bodies receiving the water. Administration, Cesan and Iema to years when compared to other local identified by ArcelorMittal Brasil
in consequence of its activities
happened in marine habitats, in aquatic
Habitats protected or restored
microbiological communities, and in fish
communities in the mid-Piracicaba River.
The directly affected section extends for
Partnership to protect 20 km along the river where there are a
Unit Size Type Situation*
or restore
lentic environment (slow moving water)
Preservation area consisting of sandbank and mangrove with vegetation
102 ha Permanent Preservation Area None and a lotic environment, with altered
undergoing regeneration. The target for 2009 is to keep the same area
running flow. The impact was deemed as
ArcelorMittal Tubarão Reforestation with growth, native, fruit and riparian vegetation species
35 ha Environmental Education Centre
undergoing regeneration. The target for 2009 is to keep the same area
None irreversible.
27 ha Mill Green Belt Ponds and creeks with vegetation. The target for 2009 is to keep the same area None
ArcelorMittal Vega 76 ha RPPN São Francisco do Sul Awaiting approval by IBAMA None
ArcelorMittal Aços Longos – 253.50 ha RPPN Antônio Dias (MG) Permanent protection area, with private security, fire brigade Environmental Police
UHE Guilman Amorim 182.6 ha Antônio Dias and Nova Era (MG) Legal Reserve Permanent protection area, with private security, fire brigade Environmental Police
Private Natural Heritage Reserve (RPPN) in Joao
ArcelorMittal Monlevade 518 ha Preserved Local Fire Dept.
Monlevade
382 ha Permanent Preservation Area in Juiz de Fora Preserved None
ArcelorMittal Juiz de Fora
400 ha Legal Reserve Area in Juiz de Fora Preserved None
ArcelorMittal Cariacica 59.81 ha Permanent Preservation Area Preserved None
ArcelorMittal Florestas – Permanent Preservation Area in the region of Teixeira de
1,846 ha Preserved None
Região Bahia Freitas, Alcobaça, Caravelas and Prado (BA)
Total of endangered species*
Permanent Preservation Area in the region of Coronel
ArcelorMittal Florestas – by risk of extinction level
2,059 ha Fabriciano, Dionísio, Joao Monlevade, São José do Goiabal, Preserved None
Região Rio Doce
Marliéria and São Pedro dos Ferros (MG)
Permanent Preservation Area in the Centre-West Region – Critically endangered 3
ArcelorMittal Florestas –
485 ha Abaeté, Bom Despacho, Dores do Indaiá, Martinho Campos Preserved None Endangered 3
Centre-West Region
and Quartel Geral (MG) Vulnerable 5
ArcelorMittal Florestas – Permanent Preservation Area in the North Region – Near threatened 0
1,358 ha Preserved None
Região Norte Carbonita, Diamantina and Senador Modestino Gonçalves
Low risk 3
* At the end of 2008
* All from aquatic habitats

BIODIVERSITY>>
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Making Steel more Sustainable
BIODIVERSITY
31

Protected or high biodiversity value areas

ArcelorMittal Vega ArcelorMittal Cariacica

Location: São Francisco do Sul (ES) Location: Vitória (ES)
Total area of the company: 2.2 sq km Total area of the company: Own area managed by the company
Position regarding the protected area: A 0.76 sq km RPPN area within the company’s borders, and a 0.75 sq km sandbank Position regarding the protected area: Within the company’s premises and/or in surrounding areas
preservation area at the treated liquid effluent outfall (non-contiguous) Type of operation: Administrative offices and production area
Type of operation: Administrative offices and production area Size of the unit: 113 ha total area, with 0.78 ha built area, and 59.81 ha Permanent
Preservation Area
Size of the unit: 0.1 sq km
Biodiversity value: Land ecosystem with 25 ha
Biodiversity value: The RPPN features several biomes and a diversity of avifauna and flora. At the
RPPN office, there is an Atlantic Forest native species nursery, including seasonings, ArcelorMittal Florestas – Região Bahia
vegetables and flowers, with average annual production of 500 thousand
seedlings. The sandbank area is part of the Acaraí State Park and is considered the Location: Southern Bahia (municipalities of Alcobaça, Caravelas and Prado)
last untouched area in this biome Total area of the company: Land leased or managed by the company
Position regarding the protected area: Within the company’s premises and/or in surrounding areas
Type of operation: Forestry, charcoal production and administrative offices
ArcelorMittal Tubarão Size of the unit: 16,084.37 ha total area, with 8,843.52 ha built area, 1,946.37 ha APP and
Location: Serra (ES) 1,946.37 ha Legal Reserve Area
Total area of the company: 1,338 ha Biodiversity value: 46% of the unit area consists of Atlantic Forest native vegetation
Position regarding the protected area: Permanent Preservation Area (APP) within the company’s premises, totalling
122 ha ArcelorMittal Florestas - Região Centro-Oeste
Type of operation: Administrative offices and production area Location: Region of Abaeté, Bom Despacho, Dores do Indaiá, Martinho Campos and
Quartel General (municipalities located in the Center-West Region of Minas
Size of the unit: 13.38 sq km Gerais)
Biodiversity value: There are eight lakes within the area. Six of them are interconnected, forming Total area of the company: Land leased or managed by the company
the Praia Mole creek
Position regarding the protected area: Within the company’s premises and/or in surrounding areas
Type of operation: Forestry, charcoal production and administrative offices
ArcelorMittal Juiz de Fora Size of the unit: 27,881.73 ha total area, with 24,221.32 ha built area, 485.57 ha APP and
Location: Juiz de Fora (MG) 485.57 ha Legal Reserve Area
Biodiversity value: 20% of the area consisting of Cerrado (Brazilian savannah) native vegetation
Total area of the company: The entire own area managed by the company
Position regarding the protected area: Within the company’s premises ArcelorMittal Florestas - Região Norte
Type of operation: Administrative offices and production area Location: Region of Carbonita, Diamantina and Senador Modestino Gonçalves
Size of the unit: 2,000 ha, with 13.5 ha built area, 382 ha Permanent Preservation Area, and (municipalities in Central Minas Gerais)
400 ha Legal Reserve Area Total area of the company: Land leased or managed by the company
Biodiversity value: Land ecosystem with 471.15 ha Position regarding the protected area: Within the company’s premises and in surrounding areas
Type of operation: Forestry, charcoal production and administrative offices
Size of the unit: 37,353.19 ha total area, with 26,436.80 ha built area, 1,357.80 ha APP and
ArcelorMittal Monlevade 1,357.80 ha Legal Reserve Area. It also has a 6,000 ha RPPN
Location: João Monlevade (MG) Biodiversity value: 33% of the area consisting of Cerrado (Brazilian savannah) native vegetation.
Total area of the company: The entire own area managed by the company It features fauna and flora diversity rates compatible with the Conservation
Position regarding the protected area: Within the company’s premises and in surrounding areas Units in the same region

Type of operation: Administrative offices and production area

ArcelorMittal Florestas - Centre-West Region
Size of the unit: 578.20 ha, with 60.20 ha built area and 518 ha RPPN Location: Region of Abaeté, Bom Despacho, Dores do Indaiá, Martinho Campos and Quartel
Biodiversity value: Activities to be performed in response to indicator General (municipalities located in the Centre-West Region of Minas Gerais)

BIODIVERSITY>>
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Making Steel more Sustainable
BIODIVERSITY
32

Other initiatives to mitigate impacts

ArcelorMittal Tubarão ArcelorMittal Florestas
Scope Initiative Result/target Scope Initiative Result/target
Installation of 23 booths (for assessment of Individual Daily
To reduce specific water consumption at the
Noise pollution To reduce noise from vehicles Duty) with acoustic lining; time reduction of engines working Water usage Reduction of 11% at the forest and 30% in seedling production
forest and in seedling production
during loading; Measured average noise reduction: 5 dB
To recirculate 100% of the effluents in the In the Centre-West Region, recirculation volume reached
Effluents
Seedling Production Units 4,487 m³ of water
In 2008:
ArcelorMittal Vega Noise pollution To measure operational noise in Dionísio (MG) Noise during daytime: 48 dB
Noise during the night: 42 dB
Scope Initiative Result/target
Measurements indicate that the noise produced by the industrial
Noise pollution To monitor noise in external areas process is within the limits established by law, with no discomfort
for neighbouring community BBA Contagem
Scope Initiative Result/target
To reduce the specific consumption of natural Average 2008: 17.73 m³/t
Use of materials
ArcelorMittal São Paulo gas Target (July 2009): 17.20 m³/t
Emissions Description Quantitative results
Scope Initiative Result/target Average 2007: 16.89 kg/t
To reduce the specific consumption of
Effluents Average 2008: 18.73 kg/t
Waste To recycle plastic, paper and cardboard 17.16 t sent for recycling hydrochloric acid
Target 2009: 16.00 kg/t

BBA Hortolândia
ArcelorMittal Itaúna
Scope Initiative Result/target
Scope Initiative Result/target
Use of materials To recover packaging material: reels and pallets 26,010 units
To collect rainwater 5,000 m³
30% reduction in emissions of particulate material
Water usage To reduce water consumption From 1,708 m3 to 646 m3 Emissions To use natural gas boiler
(128.33 mg/Nm³)
To reduce industrial water consumption From 4.312 m3 to 2.752 m3 To reuse the acid water from the gas washer to dilute
Effluents Approximately 1,036.8 m3/year
pickling bath
Waste To reduce solid residues at the ETS 208.3 t/year
ArcelorMittal Juiz de Fora
Scope Initiative Result/target BBA Osasco
In 2008:
Scope Initiative Result/target
Noise pollution To measure operational noise in Dionísio (MG) Noise during the day: 51.10 db
Noise during the night: 52.90 db Use of materials To reduce lead consumption Reduction from 2.69 kg/t to 2.42 kg/t
Effluents To treat industrial effluents at the ETS 100% of effluents treated in compliance with the law

ArcelorMittal Sabará Guilman Amorim Hydroelectric Plant

Scope Initiative Result/target Scope Initiative Result/target
To reuse 100% of the industrial waste (scales
Increase in total reused waste (scales + granulated metal powder) To increase the efficiency of the Sanitary ETS, based
Waste + granulated metal powder) at Monlevade Effluents Improvement 95% BOD (2007-2008) and 70% COD
from 118,960 t/year to 776,380 t/year on legal parameters and Enzilimp use
steelworks
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
33
Olhos d’Água Project complies with TAC with revegetation and replanting trees
Environmental
sanctions
In 2008 ArcelorMittal Brasil
operational units did not receive any
significant fines or non-monetary
sanctions for noncompliance with
environmental laws and regulations.
The company is now complying with
the Agreement for Environmental
Compensation (TCCA) and the Conduct
Adjustment Agreement (TAC).
The Agreement for Environmental
Compensation resulted from the
expansion of ArcelorMittal Piracicaba,
in 2004, and its value was arbitrated
in 0.5% of the total costs for the
project implementation to be used
in environmental compensation
projects. ArcelorMittal Brasil aims to
use the funds, which have already
been deposited in a bank account, in
the protection of muriquis, or woolly
spider monkeys, a critically endangered
species. It is the largest monkey in
Latin American that lives only in the
remaining Atlantic Forest of south-
eastern Brazil.
The agreement involves the creation of
an Integral Protection Conservation Unit,
in a piece of land known as Barreiro Rico,
in the municipality of Anhembi, in Sao
Paulo. ArcelorMittal Brasil has already
executed work on area demarcation
and georeferencing on its own account.
We are currently awaiting the Sao Paulo
State Government’s arrangement for the
purchase of the area.
As part of the same agreement, the
Company agreed to implement, together
with the municipality of Piracicaba, the
Santa Terezinha Natural Municipal Park in
an area of approximately 40 ha. The park
has already been inaugurated.
The Conduct Adjustment Agreement was
also signed in 2004. In August of that
year, part of the area of the Olhos D’Água
Distribution Centre, in Minas Gerais, was
invaded by 75 families that occupied the
area in a disorderly manner and caused
environmental damage. ArcelorMittal Brasil
removed all the families and indemnified
them for the evacuation..
In March 2006, still in fulfilment of the
TAC, the Company submitted to the
Environmental Public Prosecutor’s Office
the Plan for Recovery of Degraded
Area (PRAD) referring to planting and
revegetation in the area degraded by the
squatters, a Permanent Preservation Area
on the banks of Bonsucesso Creek.
Currently, 70% of the area is already
planted. The Company also provided
chemical grubbing and removal of rubbish
left at the place, in accordance with what
was established by the Plan for Recovery
of Degraded Area.
Making Steel more Sustainable
SANCTIONS / ENVIRONMENTAL EDUCATION
Environmental
education
It is the company’s duty to spread
knowledge about environmental
preservation. ArcelorMittal Brasil
develops environmental education
programs in almost all its units. Some of
the operational units have environmental
education centres aimed at raising critical
awareness and changing environmental
behaviour. For this purpose, they are
toured by students and people from the
communities, so as to involve them. Some
of the group’s units maintain Private
Natural Heritage Reserves (RPPNs) where
fauna and flora are researched.
The Company is also concerned about
entering into partnership agreements
with public agencies aiming at
developing projects to protect natural
resources. Among a series of initiatives
in environmental education, highlight
goes to the Program for Environmental
Communication, a partnership of
ArcelorMittal Tubarão with public and
private schools to provide teachers
and students with reflections on
environmental awareness. Only in 2008,
125 schools were involved and, since
its beginning, the project has already
benefited over 100 thousand students
In 2008, a highlight in the Program
for Environmental Communication was
the 11th Meeting on Environmental
Education, in June, promoting reflection
on the importance of developing socio-
EDUCATION>>
Themes for the ArcelorMittal
Brasil Award
2009 – Healthy Food: a delicious lesson
2008 – Enter the climate! A reflection
on global warming
2007 – Keeping an eye to the city
2006 – Ethics and environment
2005 – Conscious consumption for a
better world
2004 – The best of me for the best of
worlds. What I have done and how I can
continue
2003 – The best of me for the best of
worlds
2002 – What are the main ecosystems
in your community?
2001 – All living beings are important
2000 – Rediscovering our waters
1999 – Ecological citizenship starts at
home
1998 – Planet Earth: what can I do for
it?
1997 – Wise consumption privileges life
quality
1996 – Water: use wisely for
continuous supply
1995 – Wastefulness: use wisely and
you will lack nothing
1994 – Garbage, how to solve this
problem?
1993 – River: source of life
1992 – The Company and the
Environment
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
34
The ArcelorMittal environmental projects. The activities
Brasil Environment were intended for educators, students,
Award was created parents and councils of partner-schools,
in 1992 and since municipal secretariats of education and
then it has enjoyed environment of Vitória, Vila Velha, Serra
the participation and Cariacica, and the Espírito Santo
of over 4 million State secretariat of education, in addition
students to company partners and employees.
Around 500 people attended the meeting,
held at the Environmental Education Centre
(Ceam). With the theme “Environmental
Education: we are part of a whole”, the
program included playful activities focusing
on environmental knowledge.
The ArcelorMittal Vega Environmental
Education Program has managed to reach
a variety of publics (students, teachers,
employees’ children, fishermen’s children,
and the community), making people
aware of environmental issues and raising
their interest for protecting nature.
Parts of the program:
• School Contest – an activity involving
8 thousand students from Sao Francisco
do Sul schools, raising their awareness on
environmental preservation
• Environmental Qualification for
Teachers – environmental program for
teachers of schools in São Francisco do Sul
and region
• Colours and Flavours – distribution
of seedlings of flowers, fruit trees,
Making Steel more Sustainable
SANCTIONS / ENVIRONMENTAL EDUCATION
seasoning, teas and vegetables among The Award was created in 1992 and
the community of Sao Francisco do Sul since then, it relied on the participation
and employees of Condomínio Vega, of 4,131,710 students. In the last
an incentive for the creation of gardens ten years, 6,984 schools from 40
at home municipalities were involved.
• Green with Life – alternative
environmental education program for
students at Sao Francisco do Sul
schools and the ArcelorMittal Vega
employees’ children.
• Agreement with Casa Familiar do
Mar – offering internship programs
for students from the institution
for complementary environmental
education
The program includes incentives for
the creation of flower and vegetable
gardens at home – with distribution
of seedlings – and internship at the
Private Natural Heritage Reserve of
ArcelorMittal Vega.
Another important initiative is the
ArcelorMittal Brasil Environment
Award, a writing and drawing contest
developed in schools in the states of
Bahia, Espírito Santo, Minas Gerais and
Sao Paulo, aimed at promoting debate
on environmental and sustainability
issues. Over the school year, students
develop activities on the proposed
theme for the annual edition,
incorporating reflection on citizenship
and ethics. The theme for 2008 was
Global Warming.
Students read a publication about the ArcelorMittal Vega School Contest
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil

35 VALUE GENERATION SUPPLIERS COMMUNITIES CULTURE SOCIAL PROMOTION SANTA CATARINA FLOODS HUMAN RIGHTS

The companies forming ArcelorMittal Brasil

have a long track record of action in the
communities where they are present, through
activities to promote or sponsor a wide
range of projects intended to improve the
population’s quality of life. The projects aim
especially at education, social promotion,
culture, health, environment and urban
infrastructure.

Enriching
our
communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Enriching our communities
VALUE GENERATION
36

Value Added Statements (in R$ million)

PARENT COMPANY CONSOLIDATED
2008 2007 2008 2007
In 2008, the company’s value added was REVENUES

R$ 6.86 billion, 15.4% higher than in 2007 Sales of products and services
Rebates, losses and recoveries of contingencies
13,409,044
(24,801)
7,559,198
(31,402)
24,733,031
(55,472)
19,335,154
(44,131)
Revenues from own assets 592,569 142,133 1,122,188 1,443,517
Other operating revenues 125,994 29,280 272,404 93,010
14,102,806 7,699,209 6,072,150 20,827,550
THIRD-PARTY INPUT
Following the Company’s global guidelines, generated by its productive chain will
Raw materials consumed (6,675,260) (3,745,051) (8,447,033) (7,869,205)
ArcelorMittal Brasil develops corporate benefit society at large, especially
Cost of goods and services (2,869,383) (1,225,176) (5,977,262) (4,079,971)
policies and internal and external focusing on three aspects: education,
Energy, services and other operating expenses (351,904) (301,808) (2,504,808) (1,023,026)
programs to ensure that its economic- health & safety, and social promotion.
Recovery (loss) in the realization of assets - 150 (14,830)
financial performance would benefit
(9,896,547) (5,272,035) (16,928,954) (12,987,032)
the communities where it is inserted. In
Depreciation, amortization and depletion (2,326,104) (844,709) (3,233,949) (1,738,605)
addition, when establishing its business Financial assistance received from
strategy, the Company is based on government Net value added produced by the entity 1,880,155 1,582,465 5,909,248 6,101,913

the diversification and quality of its Value added received from transfer
products, services and markets and on the In 2008, ArcelorMittal Brasil received Result on investment in affiliates 1,613,902 1,096,382 7,047 (388,997)
permanent search for competitive costs. tax incentives in the amount of R$ Dividends, interest of investment evaluated at cost 24,770 17,048 24,770 17,048
17,110,000.00 and subventions for Other financial income and rent 8,798 7,934 8,900 8,048
The Company works so that a investment, research and development in Financial revenues and monetary variance 1,600,072 65,335 908,397 205,662
considerable amount of the value the amount of R$ 410 thousand. 3,247,542 1,186,699 949,115 (158,239)
TOTAL VALUE ADDED 5,127,697 2,769,164 6,858,363 5,943,674
EMPLOYEES
Payroll and payroll taxes 529,854 267,357 1,232,475 1,021,631
Management remuneration (note 24) 9,318 9,557 17,464 22,484
Profit sharing with employees 106,128 48,018 234,053 195,814
Pension plan 19,396 7,466 35,840 29,239
Statements of resources
664,697 332,398 1,519,832 1,269,168
generated in 2008
TAXES
Federal 627,932 447,948 1,881,991 2,046,132
State 138,034 145,666 388,720 356,124
Municipal 8,524 3,961 23,185 6,994
24% 22%
(-) Tax incentives - (272) (70,375) (183,198)
774,490 597,303 2,223,522 2,226,052
FINANCERS
Interests and monetary variance 973,227 (434,030) 1,318,620 (870,878)
22% Capitalized financial charges 10,716 - 10,716 -
32%
Leases and rents 133,326 67,491 155,226 72,434
1,117,269 (366,539) 1,484,562 (798,444)
SHAREHOLDERS
Interest on shareholders’ equity and dividends 2,523,043 2,266,743 2,737,603 1,958,480
Shareholders Taxes Retained earnings 48,198 (60,741) (1,107,156) 1,288,418
Employees Financers 2,571,241 2,206,002 1,630,447 3,246,898
5,127,697 2,769,164 6,858,363 5,943,674
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
37
Suppliers
Service contracts During the year, approximately 28%
include clauses of the ArcelorMittal Brasil acquisitions
aimed at reducing of raw materials and others occurred
possible risks in in the regional or local sphere, thus
the provision of ensuring job generation, tax collection
services and improvement of socio-economic
conditions of the communities.
This is offset by requirements included
in supply contracts aiming at ensuring
excellence not only in aspects such as
quality and reliability, but also in socio-
environmental performance and the
product impact.
Requirements in contracts with suppliers
ensure quality products
The document General Conditions for
the Hiring of Services – available on
the ArcelorMittal Brasil homepage –
contains all the conditions which must
be met by the suppliers before a service
is hired. Among others, the potential
provider’s management must assure
good work conditions for employees, and
preservation of the environment.
The terms have also to comply with
the Global Compact, therefore the
service provider must internally adopt all
necessary measures to support the UN
framework, under the penalty of having
the contract terminated or not even
entered into.
At the same time, suppliers and
providers are supported by ArcelorMittal
Brasil for their programs for training,
qualification and development. With
this assistance, they become more
prosperous and competitive, and capable
of meeting requirements based on socio-
environmental criteria.
Contracts
Due to the characteristics of the steel
industry, consisting of long and complex
productive chains, the large companies –
major links in the industrial chain – have to
extend to their suppliers the same care they
internally dedicate to issues such as safety,
health, human rights and environment.
Service contracts include clauses aimed
Enriching our communities
SUPPLIERS
at reducing potential risks in the provision
of services. These clauses are drafted and
controlled by ArcelorMittal Brasil’s Legal
Area, which is also required to provide
legal support to areas involved in the
negotiation of mandatory clauses (labour,
environmental, safety, fiscal), depending
on the nature of different contracts.
At the local level, units monitor the
fulfilment of supply clauses, based on
established criteria and governed by set
standards which suppliers are well aware
of, with monthly evaluation of deadlines
and quantities, as well as certification of
quality, environment, health and safety
on the part of suppliers.
Each plant establishes their own
baselines for the companies and
proposes corrective and/or preventive
actions in case they fail to comply with
their targets. In case of suppliers of
critical raw materials for ArcelorMittal
Monlevade (MG), there is also the
statistical control of the process, as
well as initiatives referring to the social
responsibility of the contractor.
SUPPLIERS>>
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
38
Participants attend group dynamics
during a Tear Project meeting
‘Tear’ Project
ArcelorMittal Brasil was one of the nine
companies in strategic economic sectors
selected to support the ‘Tear’ Program
– Weaving Sustainable Networks (‘tear’
means loom in Portuguese), an Ethos
Institute initiative in partnership with the
Multilateral Investment Fund (Fumin) of
the Inter-American Development Bank
(IADB). And it achieved the best results
among all participants.
Held in the period 2006-2008, the
program promoted the adoption of
corporate social responsibility actions
by small and mid-size businesses acting
in the value chain of the sectors of
sugar & alcohol, civil construction,
electric energy, mining, oil & gas, steel
& iron, and retail. In every segment, a
large company was identified as having
advanced experience in corporate social
responsibility to serve as anchor for
the program.
ArcelorMittal Brasil, the anchor in the
steel sector, worked with 15 small
and mid-size businesses, fostering
the incorporation or expansion of
socially responsible management.
Progress was assessed by means of the
Ethos Indicators of Corporate Social
Responsibility, and filled out the Brazilian
Matrix of Evidence of Sustainability,
which was jointly developed by
SustainAbility, International Finance
Corporation (IFC) and Ethos Institute.
One half of the companies in the chain
anchored by ArcelorMittal acquired new
customers and prepared their Vision,
Mission and Values to guide their actions.
In addition, 100% of the companies
prepared and implemented their Codes
of Ethics, 73% created programs to
reduce consumption of energy, water
and paper, and implemented a selective
waste collection.
The results still evidenced that 67%
Enriching our communities
SUPPLIERS
Prodfor
The Program for Vendor
Development and Qualification
(Prodfor) is highlighted at the
units of Tubarão and Cariacica
(ES)
developed or implemented internal
The focus is to assist suppliers in the
processes to reduce the environmental
implementation of a quality management
impact of their activities, 60% articulated
system, qualifying them to advance in pre-
dialogues with their stakeholders to
established contractual conditions of large
enhance internal management processes,
companies, thus favouring their relationship.
and 53% developed products/ services
with socio-environmental aspects
Prodfor consolidated and developed
and criteria.
over time, now including certifications
in environmental management systems,
In addition, 67% developed programs for
occupational health and safety, as well as
employee qualification in sustainability-
an unprecedented certification in financial,
and corporate responsibility-related
fiscal and labour management.
topics, 93% of them stated that the
implemented socio-environmental
In 2008, the program evaluated and
responsibility measures helped them
qualified other two suppliers: Acimex
improve their business relations with
Transporte e Comércio (trade and
large companies, 87% declared to
transportation), including an award as
have improved business relations in
highlight in the implementation of its
their value chains, 87% perfected the
Environmental Management System,
dialogue and reduced conflicts with the
and Hilub Produtos de Lubrificação e
anchor-company, and 100% improved
Abastecimento (lubrication and fuels). For
productive or management processes.
2009, other five companies were appointed.
‘Tear’ was awarded the Make a Difference
Award 2008, by O Globo newspaper,
in the category of Social Purpose. This
award recognizes outstanding companies
or projects for their social responsibility
actions in the country. The ArcelorMittal
Brasil case was published in the website of
the World Business Council for Sustainable
Development (WBCSD), a global
association of 200 businesses working
on matters of sustainable development,
highlighting the ‘Tear’ Program as a
reference in sustainability and social
responsibility practice.
ArcelorMittal Tubarão
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
39
Communities
The operation of companies of the
size of ArcelorMittal Brasil’s industrial
units requires ongoing work on
the relationship with neighbouring
communities. The engagement is carried
out through the promotion of economic,
cultural and socio-environmental
development of the areas.
The community involvement really
matters for the success of the
ArcelorMittal Brasil undertakings. For
that reason, the transparent dialogue
with those populations guides the
Company’s activities, searching for the
joint development of programs to attain
equally common objectives.
The engagement processes include public
audiences with local residents. As from
2008, the policy was emphasized with
training focused on the improvement of
relations with community associations,
government agencies and other entities.
Sispart
Breakdown of investments in
external social responsibility
SECTOR
Health and Science 697,116.00
Education 4,579,731.98
Arts and Culture 825,006.83
Sports 813,709.75
Social Promotion 2,078,379.29
Environment 499,342.20
Total 9,493,286.05
Sispart
One of the dialogue tools is the System of
Interested Parties (Sispart), developed by
ArcelorMittal Tubarão, aimed at providing
timely and effective responses to
demands, for instance, from associations
of residents and non-governmental
organizations. The good practice was
adopted by the ArcelorMittal Foundation
and is under implementation in all units of
the ArcelorMittal Group, under the name
Foundation Global Social Management
(FGSM).
Sispart uses a software resource that
allows for the effective recording of all
social responsibility-related requests that
reach the company, reducing the time
needed for assessment and approval of
projects and enhancing control over funds.
Following the data recorded and
monitored by Sispart in 2008, the
company determined the breakdown of an
investment to the tune of R$ 10 million
in external social responsibility initiatives,
in in-house social programs, in support to
specific initiatives – such as infrastructure
works and promotion of technical and
cultural events – and in systematic
support to social projects proposed and
developed by local NGOs.
Dialogues in São Francisco do Sul
An example of a successful action
by ArcelorMittal Brasil to involve the
communities in projects and ensure the
sustainability of its undertakings was the
installation of a unit for transformation
of flat steel in São Francisco do Sul (SC),
in 2002. The mere announcement of
the ArcelorMittal Vega implementation
generated a series of questions on
the part of the population of the small
coastal municipality – selected for its
strategic location in regard to Mercosur
countries, for the port infrastructure,
and for its equidistant position from
large automotive industries.
The community was afraid of a large
environmental and economic impact in
the city, as São Francisco do Sul, close
to celebrating 500 years, lived basically
on the port, tourism and fishing, with
absolute no industrial tradition. The
questions focused on possible impacts to
nature, and possible damages to tourism
and fishing activities with the installation
of a steelmaking facility.
To clear up their doubts, ArcelorMittal
Vega constituted set up an Advisory
Council, with the presence of economic
and community leaderships of Sao
Francisco do Sul, which followed all
stages of the unit implementation. It also
created the Association São Francisco
of the Future, in partnership with local
entrepreneurs.
The entity mapped necessities
and improvement opportunities in
environmental, social and economic
Enriching our communities
aspects. The work resulted in the
local Agenda 21, a document with
an inventory of ideas from the
entire community on the sustainable
development of São Francisco do Sul, to
meet the needs of the municipality.
Image auditing
Another tool used at ArcelorMittal
Brasil to monitor the impact of its
activities on society is Image Auditing,
whose results exceeded the target
established in 2008. The survey
was based on the Index for Quality
of Exposure in the Media (IQEM), a
comprehensive work to identify, qualify
and assess news involving the company
published in means of communication.
The survey measures aspects such
as reading criteria, based on the
assessment of opinion makers carried
out by CDN Estudos & Pesquisas, and
COMMUNITIES
IT class at ‘Casa Escola’ Project, ArcelorMittal Vega
editorial importance, based on the
assessment of journalists.
The average monthly IQEM stayed at
8.5 – against the set target of 7.5.
The company also had the lowest
negative visibility among the large
steel industries in the country (2,895
occurrences, against 7,691 of the
runner-up).
In addition, an image survey is
periodically conducted nationwide
to verify the opinions of priority
stakeholders – employees,
communities, customers and entities –
on the performance of ArcelorMittal.
COMMUNITIES>>
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
40
Transforming
action
In 2008, the ArcelorMittal Brasil
Foundation celebrated its 20th
anniversary. It is a non-profit
organization intended especially for
the formalization and development
of the Group’s social responsibility,
emphasizing works with communities
living near the business units.
Through partnership agreements with
other entities, such as NGOs, public
agencies and community leadership,
the Foundation has strengthened its
role as an integration network and
increased the effect of its activities,
endeavouring to identify and add value
to local capacities and potential –
which is key for the construction of a
better world.
The activities of the ArcelorMittal
Brasil Foundation follow the same
principles, for the current benefit of
about 800 thousand people per year.
Its major focus is the education of
children and adolescents to become
more conscious, productive and
participative citizens, with programs
comprehending education, culture and
social promotion. Specific projects in
the areas of health and environmental
education complete its action and
also contribute to improve the quality
of life of the community. In order to
attain effectively transforming, long-
term results, the Foundation’s activities
include transfer of methodologies to
municipalities served.
In 2008, the ArcelorMittal Brasil
Foundation invested US$ 619,522.00
in education, a priority focus of the
group’s social action. The resources
were applied in the programs Quality
Education (PEQ), Affective and
Sexual Education (PEAS), Juvenile
Entrepreneurship and Digital
Citizenship, in addition to other
initiatives intended for the health of
children and youths such as Seeing is
Living, Always Smiling, and Listening
Well to Live Better.
Youths and citizenship
Two educational programs developed by
ArcelorMittal Brasil, in partnership with
public agencies and teaching institutions,
share the same objective: to offer
more opportunities for destitute young
people to become citizens and perform
their roles in the socio-economic
development of their communities.
One of them is the Socio-Educative
Training Program (Procap), offering
adolescents ages 15-18 internship
programs at ArcelorMittal Tubarão
provided they fulfill some requirements:
to be resident in Serra (ES); to study in the
public school network; and to have family
income of up to two minimum wages.
In addition to the experience of working
in a large-scale company, the youth
has access to training, assistance grant
of one minimum wage, English classes,
and professional courses provided by
institutions such as Senai and Sesi.
The opportunity can change the lives
of the adolescents, as it was the case
of the Benefit Control Technician with
the Personnel Management area,
Wesley Lima Ferreira. He joined Procap
in June 2000 and was an intern up to
September 2001. During the time, he
attended several courses and continued
his studies. Six months after leaving
the company, he was called back as
an outsourced employee. He has been
working for ArcelorMittal Tubarão for
almost four years now, and he is at the
university.
The objective of the Program for
Affective and Sexual Education (PEAS),
developed by the ArcelorMittal
Brasil Foundation, is to contribute to
the personal, social and productive
development of adolescents, focusing
on sexual and reproductive health. The
initiative benefits 78 thousand students
from public schools in the cities of
Carbonita, Contagem, João Monlevade,
Juiz de Fora, Itaúna and Vespasiano
(Minas Gerais), Cariacica (Espírito
Santo), Feira de Santana (Bahia) and
São Paulo, contributing to reduce
Enriching our communities
the number of unwanted pregnancy,
sexually transmitted diseases, drug
abuse, violence, and relationship
problems.
In the period 2000-2007, PEAS also
qualified 755 educators, including
technicians from municipal secretariats
of Education, Health, Social Action
and Justice. In 2008, PEAS qualified
67 educators, benefiting 2,106
students from nine municipalities. The
investment was US$ 99,969.00.
For 2009, plans call for the expansion
of PEAS to other two municipalities
in Minas Gerais, in addition to the
qualification of a youth committee.
PEAS is also applied as a socio-
educational measure to minors in
conflict with the law, the so-called
Seeding Project. In 2008, Rio Piracicaba
(MG) and Bela Vista de Minas (MG)
followed the successful experience of
Joao Monlevade and joined the project.
The program Educating in Diversity
created in 2008 to qualify educators
aims at transforming pedagogical
practice to foster the school inclusion
of students with disabilities. Over
the year, 23 educators attended 120-
hour courses with both theoretical
content and practical and planning
activities focusing on specialized
educational attention.
COMMUNITIES
Student attends educational activity at the ArcelorMittal Brasil Foundation
Quality Education
Program
The Quality Education Program (PEQ)
was the program receiving the greatest
share of investment in education from the
ArcelorMittal Brasil Foundation, amounting to
US$ 224,854.00.
The Quality Education Program (PEQ) is
intended to assist public schools in perfecting
their pedagogical processes and school
management, providing for a more effective and
stimulating learning process, resulting in better
performance of students and lower failure and
drop-out rates. In 2008, PEQ involved 2,730
educators and benefited 24,898 students from
58 schools.
For 2009, the program shall be expanded into
another municipality, in addition to the current
three where it is developed (Cariacica, Feira de
Santana and Senador Modestino Gonçalves).
For an idea of its effectiveness, in Feira de
Santana (Bahia), the rate of students with gains
in reading targets grew from 27% to 53% in
2008; in writing targets, it came from 13% to
40%; in communication from 39% to 59%, and
in calculation from 26% to 46%.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Enriching our communities
CULTURE
41

Theatre performances promoted by Cultural

Foundation of Sao Francisco do Sul (SC)
Investments made with tax incentives (in R$)
Resources from Rouanet Law (Income Tax) Belgo Bekaert Arames 976,000.00
ArcelorMittal Tubarão 3,529,810.31
Culture ArcelorMittal Itaúna 46,000.00
Resources from State Law (ICMS) Belgo Bekaert Arames Osasco 152,806.10
ArcelorMittal Piracicaba 2,066,831.22
The companies in the ArcelorMittal ArcelorMittal Monlevade 1,270,501.64
Brasil group develop specific cultural ArcelorMittal Juiz de Fora 1,131,700.00
programs for their internal public, as ArcelorMittal Sabará 177,373.97
well as for the employees’ families, Total investments in culture 9,405,085.89
retirees, pensioners, and young
Total investments in culture 9,405,085.89
apprentices.
Resources from the Sports Law (Income Tax) ArcelorMittal Tubarão 948,002.50

In 2008, investment of ArcelorMittal ArcelorMittal Itaúna 11,000.00

Foundation’s own resources in culture
amounted to R$ 917,307.48. The
highlight was the ArcelorMittal Culture
Program, putting together all the initiatives
developed by the Foundation in the area of
arts and culture. The focus is to expand the
access of communities to cultural assets
and services, and to promote projects for
the formation of managers and artists.
The program includes a free agenda of
workshops and performances in the
municipalities served by the Foundation.
Between 2007 and 2008, ArcelorMittal
Cultural supported initiatives in 28
municipalities: Belo Horizonte, Abaeté,
Bela Vista de Minas, Bom Despacho,
Contagem, Dionísio, Dores do Indaiá,
Itaúna, Itabirito, João Monlevade, Juiz de
Fora, Martinho Campos, Nova Era, Ouro
Preto, Quartel Geral, Rio Piracicaba, Sabará,
Santos Dumont and Vespasiano, (MG);
Vitória and Cariacica (ES); Salvador and
Feira de Santana (BA); São Paulo, Bauru,
Hortolândia and Piracicaba (SP) and Rio de
Janeiro (RJ).
The program is carried forward with
the support of the company’s Culture
Committee, and its management is totally
computerized through the Ctrl + Culture
Total investments in sports
Total
Note: ArcelorMittal Vega made no investments from tax incentives
system, a software resource allowing for
the integration of all information related to
cultural projects, facilitating the processing
of sponsorship requests, analyses,
monitoring and evaluation of project
results, meeting the demands of both the
company and cultural promoters.
At ArcelorMittal Tubarão, a highlight
in cultural support was the Christmas
Concert, promoted at the Camburi
Beach on the evening of December 20.
It involved about 1,000 professionals
and relied on the participation of the
company’s choir and presentations by
social projects supported by the Company.
The event featured the Espírito Santo
Philharmonic Orchestra (Ofes), performing
a repertoire that included classical music,
Brazilian popular music and frevo. Other
performances included music and dance.
10,364,088.39
Talents of the Company, an itinerant
project, focuses on valorization of
art, stimulating the creativity and
artistic development of employees in
their leisure time, reducing stress and
improving the organizational climate. A
bus which has been converted into an
art gallery, visits the ten lunchrooms
of the steelworks with exhibitions of
works of art by employees, young
apprentices, retired people and
pensioners. Up to the eighth edition,
held in 2008, there were over 17
thousand participations.
Between September and October, the
company promoted the Musical Talent
Festival, with the objective of revealing
talent in the company, promoting
contact with music, encouraging
cultural production and valorizing
local art. Participants contested in
959,002.50
four categories: composer, singer,
instrumentalist, and “Popular Jury”,
in which the public chooses the best
among all participants.
In November, celebrating the 25 years of
the company, a Gala Evening Festival was
promoted, an event open to all employees
with free admission. In two evenings,
there were performances by Espírito
Santo musicians and by the winners of the
Musical Talent Festival held a month earlier.
At ArcelorMittal Vega, a highlight is
the National Museum of the Sea, in
Sao Francisco do Sul, which was totally
restored and modernized five years ago
with an investment of R$ 480 thousand
of Company funds. The museum
featuring Brazilian vessels, aims at valuing
the art and knowledge of those make
their living at the sea.
In partnership with the Cultural
Foundation of São Francisco do Sul and
the Association São Francisco of the
Future, the Santa Catarina unit promotes,
once a month, the São Francisco on
the Movie, an event with exhibition
of films for the community of São
Francisco do Sul. With the initiative, the
Company provides entertainment for the
community and helps destitute families
with the distribution of food donated as
admission. The action benefits about 12
thousand people from the community.
ArcelorMittal Vega supported five
cultural projects in 2008, with
investments of R$ 285 thousand. For
2009, the investment forecast for the
cultural area is R$ 160 thousand.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
42
Social Promotion
Among the initiatives connected with
social promotion, a highlight is the
Citizens of Tomorrow, encouraging
individuals and companies to donate part
of their due income taxes to Municipal
Funds for the Rights of Children and
Adolescents.
Over 7 thousand donors – most of
them employees with subsidiaries of
ArcelorMittal Brasil – collected R$ 2 million
in 2008, the best result ever in ten years
of the initiative. The funds, managed by
the ArcelorMittal Brasil Foundation, will be
distributed to Municipal Councils for the
Rights of Children and Adolescents from
28 cities located in five regions where
ArcelorMittal companies operate in the
country (MG, SP, ES, RS and BA), for use in
social projects at the communities.
Participants in Pró-Voluntário perform
educational activity for children
Another distinguished initiative was the
Program for Bone Marrow Donation,
mobilizing, in the last two years,
employees and their families as well
as the entire network of suppliers and
partners of ArcelorMittal Brasil. The
objective was to increase the National
Database of Bone Marrow Donors
(Redome), of the National Cancer
Institute (Inca), and to keep donors active
and informed of the campaigns, with
updated registers, strengthening the link
among the parties. To this moment, there
are 36 thousand registers (equivalent
to 5% of the total), with estimated 300
thousand registers by June 2009. In
total, ArcelorMittal Brasil has already
invested about R$ 1 million in projects
with Inca, including the expansion of the
pediatric unit and the development of the
internal program to recruit donors.
V-Day
To disseminate the practice of
volunteering among its professionals,
at least 11 units of ArcelorMittal Brasil
programmed activities on December 5
to celebrate the International Volunteer
Day, the V-Day. Further to collecting and
donating goods, the core objective was
to engage employees, stimulating the
feeling of solidarity.
The year 2008 was the first to have the
date celebrated in an integrated way
in almost all plants of ArcelorMittal in
the world, involving approximately 7.6
thousand employees in 45 units. During
the event, simple actions are promoted,
but they make all the difference,
ranging from school remodeling, house
painting and visits to orphanages. The
participating units are free to determine
the scope of their activities.
In ArcelorMittal Aços Longos, the V-Day
involved 547 employees from nine
units, benefiting 1,190 people. The
volunteers worked for about 90 hours
on tasks such as gardening, electrical
repairs, painting and health attention
for the benefit of the community,
with the best results ever achieved
when compared to previous years the
celebration was held.
SOCIAL PROMOTION>>
Enriching our communities
SOCIAL PROMOTION
Young people participating in the Shadow Entrepreneur
for One Day visit ArcelorMittal Tubarão
Shadow Entrepreneur for One Day
In November 2008, seven adolescents experienced a different routine:
they observed decision-making and employee recruitment, attended
meetings and witnessed other administrative activities performed by a
Personnel Manager from ArcelorMittal Tubarão. All thanks to the Shadow
Entrepreneur for One Day program.
The objective is to offer young people a realistic view of the job market,
helping them understand how the knowledge acquired in the classroom is
applied in the career, in addition to providing values for the development of
characteristics required of professionals.
The Shadow Entrepreneur for One Day is part of a series of activities planned
by ArcelorMittal Tubarão to celebrate the International Volunteer Day
(December 5). The initiative is replicated in other companies in the State
of Santa Catarina, with the promotion of Junior Achievement, a non-profit
association founded in 1919 in the USA dedicated to educating students
about workforce readiness and entrepreneurship, especially in economics and
businesses.
The results calculated by Junior Achievement with the program Shadow
Entrepreneur for One Day go beyond simple learning. The young people
have the chance to network and, therefore, discover good opportunities for
internships and jobs.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Enriching our communities
SOCIAL PROMOTION
43

Juara Lake Reuse generates income

ArcelorMittal ArcelorMittal Sistemas donated eight
Tubarão financed computers to revitalize the computer
the basic room of Project ‘Vivo’, which gather 13
infrastructure volunteer professionals from ArcelorMittal
for fishing and Aços Longos Planning and Assistance
gastronomic Management. The project is dedicated to
activities at the Caminhos da Paz institute, in Sabará (MG),
Juara Lake which supports 180 destitute children aged
6-16. The intermediary for the process was
the ArcelorMittal Brasil Foundation.
The project promotes local
development, combining environmental
preservation with job and income
generation. This is the vector of the
Sustainable Development Project
of the Juara Lake, encouraging local
tourism, handicraft and fish farming
activities through the associative work
of inhabitants in the region of the
municipality of Serra (ES).
Developed in partnership with the
Municipal Secretariat for Economic
Development of Serra (Sedec), the
priority of the Project for Sustainable
Development of the Productive Chain
of Recyclable Material Reuse is to
restructure Recuperlixo, the main
association of refuse collectors in the
municipality of Serra (ES).
ArcelorMittal Tubarão supported the necessary
conditions for the development of the entire
reuse chain by constructing a shed for waste
screening. It increases the added value of
marketed waste and, consequently, the monthly
average income of the workers.

At ArcelorMittal Tubarão, the solidarity One of the achievements was the

campaign started three days earlier, for the
collection of non-perishable food among
employees and contractors interested in
participating. The donations were sent to
Banco Verde Vida, a project of the Vida
Nova Vila Velha Movement (Movive) which
is supported by the Company, benefiting
families living in the Aribiri River Basin who
are helped by trading waste for Green
Currency for shopping at the Solidarity
Supermarket.
ArcelorMittal Vega created an Enrolment
Committee to register those interested
in performing volunteer work. Enrolled
employees performed activities for
screening, set assembly, and distribution of
supporting material in the areas affected
by floods in the State of Santa Catarina at
the end of November, or for the assembly
and distribution of kits with food and toys
for the Fraternal Christmas Campaign
benefiting destitute communities in São
Francisco do Sul.
creation of the Fishermen Association
of the Juara Lake – APLJ, a non-profit
organization aimed at generating job
and income for the local fishermen
community through sustainable Fishermen activities generate income for
practices in the exploration of the Juara the community of Juara Lake
Lake natural resources. ArcelorMittal
Tubarão supported the initiative by
financing infrastructure improvements
for fishmongers’ facilities. The company
has also invested in the construction of
a restaurant managed by the fishermen
on the banks of the lake. It contributed
to add value to the product and also to
expand leisure and tourism options in
the region.
Improvements in the quality of life are
already noticeable: average monthly
income is now around R$ 1,000.00. The
project also contributed to improve the
infrastructure of the district that now has
paved streets, better urban transportation
system and landscape planning.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
44
Santa Catarina floods
ArcelorMittal Vega was very active in
its attempt to relieve the impacts of the
floods that affected Santa Catarina at
the end of 2008, leaving a large number
of victims and homeless people.
To assist affected families, the unit
contacted the Association of Volunteer
Social Work of Sao Francisco do Sul
(Volunteer Fire Brigade) to get information
about the situation of the city and the
region. In Sao Francisco do Sul, the
most affected district was Majorca. The
situation in the municipality of Itapoá was
critical too.
The immediate local need was to supply
material for the firemen to rescue the
victims, such as personal protective
equipment (PPE) and fuel.
Based on the information, ArcelorMittal
Vega started an action plan involving the
participation of the internal public and the
communities, as well as the support of the
ArcelorMittal Brasil group.
Internal campaign
This focused on the collection of clothes,
food, and cleaning material. The collected
items were sent to the Municipal
Secretariat of Housing, Social Development
and Citizenship in São Francisco do Sul, to
be donated to the community of Majorca.
The movement, occurred on November 28,
collected six boxes of clothes and non-
perishable food.
Enriching our communities
SANTA CATARINA FLOODS
Firemen provide assistance after destruction
caused by floods in Santa Catarina
External action Itapoá
Managers contacted partners, suppliers On December 11, the municipality
and customers to request their support. of Itapoá, one of the most affected
In response, there was a mobilization for by rainfalls in the north of the state,
a collection campaign, the development received the assistance of ArcelorMittal
of information material on the care and Vega. About R$ 50 thousand were
prevention of diseases associated with invested in the acquisition of 2,515
floods (cleaning water tanks, care with items including cleaning material,
drinking water and fresh food); the mattresses, pillows, sheets and towels,
donation of medicines, the assistance which, according to the Civil Defense,
through volunteer work, money deposits were the most needed items.
in Civil Defense’s bank account, and even
a contribution to logistics with trucks to Corporate action
transport donated items.
ArcelorMittal Brasil opened a current
Fire Department account on behalf of the “Fund for the
Reconstruction of Santa Catarina”, with
The Association of Volunteer Social an initial deposit of R$ 100,000.00. In
Work of Sao Francisco do Sul received addition, an Internal National Campaign
six complete sets of special fire fighting requested donations from employees of
apparel (boots, helmets, trousers, jackets, units all over Brazil.
balaclavas and gloves) and fuel to the Items donated to the municipality of Itapoá
value of R$ 10,000.00 to assist in the At the end, ArcelorMittal Brasil and DESCRIPTION QUANTITY TOTAL VALUE (R$)
rescue of victims in the region. ArcelorMittal Vega donated together
Single mattress 130 9,100.00
about R$ 170 thousand. Approximately
São Francisco on the Movie two thirds of the amount was intended Double mattress 130 20,927.40
for the acquisition of building material 4-piece double sheet set 130 5,967.00
Held in the last weekend of the month for 15 new houses in the municipality
4-piece double sheet set 130 4,212.00
by ArcelorMittal Vega, the project “São of Gaspar. The families benefiting were
Francisco on the Movie” consists of movie selected by the Municipal Secretariat Towel 520 3,484.00
sessions for the community of São Francisco of Social Development and the local Bleach (5-liter container) 260 733.20
do Sul. The admittance fee is one kilogram Rotary Club, with the approval of Broom 260 741.00
of non-perishable food. In the edition of ArcelorMittal Vega. The land for the
Squeegee 130 2,600.00
November 2008, the collected food was construction of the houses will be
sent to the Municipal Secretariat of Housing, donated by the municipal administration 15-liter bucket 260 1,154.40
Social Development and Citizenship in and the building work will be done by Rough cleaning cloth 260 286.00
Sao Francisco do Sul, to be donated to the the community under the supervision of
Bar soap package 175 633.50
Majorca district residents. the entities involved.
Cleaning cloth package 130 169.00
TOTAL 2,515 50,007.50
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
45
Respect for
human rights
ArcelorMittal Brasil maintains a policy
for protection of human rights aimed
at contributing for the development of
society through an action governed by
the best practices in social responsibility.
The group propagates these concepts and
works to align its partner’s management
with them, and expects that its
stakeholders will share the vision of a
sustainable and fair society, following the
principles of:
• Refusing the use child labour
• Refusing the use of compulsory labour
• Providing a safe and healthy workplace to employees
• Respecting the right to freedom of association of its
employees’ unions and class entities, recognizing collective
bargaining as labour relations
• Not being involved in incidents of discrimination in hiring,
dismissal or promotion of employees, and not supporting its
use
• Not being involved in physical punishment or verbal abuse,
and not supporting their use
• Complying with applicable law regarding working hours
• Making sure that salary paid is sufficient for the basic needs
of employees
Conduct
The maintenance of ethical, transparent
and reliable relations between
ArcelorMittal Brasil and its stakeholders
is one of the pillars for the sustainability
of its businesses. This is one of the
reasons behind the creation and
application of the Code of Conduct,
establishing rules and procedures
required from the professional whenever
acting on behalf of the company. The
contents, approaching topics connected
with ethical issues, corruption and
human rights, is the subject of training
offered to 100% of the employees.
ArcelorMittal maintains a Policy of Reports
of improper behaviour on issues related to
Relationship with
indigenous communities
Until 2008, ArcelorMittal Brasil was never
involved in lawsuits or even in complaints
to the authorities regarding conflicts
of corporate interests and the rights of
indigenous communities. In February
2009, a maintenance audit conducted
by the Forest Stewardship Council
(FSC) found that ArcelorMittal Florestas
has operations as close as 8.5 km to
indigenous areas in the Center-Western
region of Minas Gerais.
Enriching our communities
accounting, auditing, finance, or involving
bribery, setting up an open channel for
employees to report irregularities to
their immediate supervisor, to the legal
department or to internal auditing, without
exposing themselves. Should the agent of
the illicit behaviour be one of these people,
the denouncement may be reported to
higher hierarchical levels anonymously.
In 2008 there were no reports of material
cases or lawsuits where ArcelorMittal Brasil
or employees acting on its behalf were
involved in cases of corruption. During the
year the company continued the work of
assessing corruption risks, scanning 100%
of the units of the group in the country,
which had started in 2006. In turn, the
group updated managerial procedures for
In view of this, the company, which was
not aware of the proximity, will comply
with a resolution by the National Council
for the Environment that says that
“the authorization to explore forests
and succeeding formations involving
management or suppression of the
forests and succeeding formations in
rural real estate in a range of 10 km
from delimited indigenous lands shall be
preceded by georeferenced information
to the Indian National Foundation (Funai)”.
In compliance with the FSC, ArcelorMittal
Florestas warrants the indigenous people
the right to possess and manage the
HUMAN RIGHTS
dealing with ethical issues and planned new
training sessions and communication plans
for related policies, focusing on managers,
to be accomplished during 2009.
However, there was one lawsuit related
to improper behaviour. A former
employee filed an action for alleged sexual
harassment. After the presentation of
evidences and witnesses, the court ruled
that her accusations were baseless and
dismissed the case. She appealed, pending
decision in second instance.
Upon learning of the case, ArcelorMittal
Brasil reinforced its preventive action
with employees, guiding them on the
consequences of conduct that might be
considered illicit.
resources of their territories, giving them
the right to control the activities of forest
management in those areas, except if
they assign such control, in free and willful
manner, to other agents.
The document also clarifies that the activities
of forest management may not threaten or
reduce, directly or indirectly, the resources or
rights of possession of indigenous peoples,
and it is necessary to clearly identify and
protect the areas of cultural, ecological,
economic or religious relevance to those
peoples. It is also warranted a reward for
the application of management techniques,
which should be formally agreed upon.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil

46 GRI CONTENTS GLOSSARY AWARDS AND RECOGNITIONS CREDITS

ArcelorMittal Brasil believes that

the Sustainability Report 2008
complies with the application
level A of the GRI guidelines.

Report
Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Report Profile
GRI CONTENTS
47

GRI - Table of Contents Global Compact Principle Page 3.10. Explanation of the effect of any re- Re-statements are accompanied by
statements explanatory notes
Strategy and Analysis 3.11. Significant changes from previous
None
reporting periods
1.1. Statement from the most senior
3
decision maker GRI Content Index
1.2. Impacts, risks, and opportunities 2 and 6 3.12. Location of standard disclosure 47

Organizational Profile Assurance

2.1. Name of the organization 2 3.13. External assurance None
2.2. Primary brands, products, and/or
2
services Governance, Commitments and Engagement
2.3. Operational structure 2
Governance
2.4. Location of organization’s
2 4.1. Governance structure 8
headquarters
About the Report 2.5. Countries where the organization
2
4.2. Identification of the highest executive
Corporate website
Home –
Company –
operates officers
Management
This sustainability report, prepared 2.6. Nature of ownership and legal form 2
4.3. Independent and/or non-executive
according to the Global Reporting members
Annual Report
2.7. Markets served 2
Initiative (GRI) guidelines, presents the
ArcelorMittal Brasil’s strategies and 2.8. Scale of the reporting organization 5 4.4. Mechanisms for recommendations to
the highest governance body
experiences related to the challenges 2.9. Changes during the reporting period 5
of the national and international steel Bonus based on economic,
2.10. Awards received in the reporting period 52 4.5. Linkage between compensation /
industry, the practices of corporate environmental, social and
economic and environmental performance
management targets
governance, the investments in Report Parameters
personnel, the search for sustainability 4.6. Processes to ensure conflicts of interest
Report profile 8
in steel production, and social and are avoided
economic attention to the populations 3.1. Reporting period for information 4.7. Qualifications and expertise of the
Jan 1 to Dec 31, 2008 8
living in the localities where its provided members
subsidiaries operate. Its contents 3.2. Date of most recent previous report Jan 1 to Dec 31, 2007 4.8. Internally developed statements of
8
have been defined through analysis 3.3. Reporting cycle Annual values, codes, and principles
of surveys conducted in 2008 and 4.9. Procedures of the highest governance
3.4. Contact point for questions 52 8
submitted to the transversal and body
permanent working group, responsible Report Scope and Boundary
4.10. Processes for evaluating the highest
for the information contained in this 8
Defined by the permanent internal governance body’s own performance
3.5. Process for defining report content 47
publication. work group
3.6. Boundary of the report 47 Commitments to External Initiatives

3.7. Specific limitations on the scope Brazilian operations 4.11. Precautionary approach Annual Report

3.8. Basis for reporting 47 4.12. Social charters, principles, or other

8
initiatives
3.9. Data measurement techniques and the
GRI protocols 47 4.13. Memberships in associations 8
bases of calculations

GRI CONTENTS >>

SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
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GRI CONTENTS
48

Stakeholder Engagement EN5. Energy saved 8 and 9 22

4.14. List of stakeholder groups 2 EN6. Eco-efficient products and services 8 and 9 22

4.15. Basis for identification and selection EN7. Initiatives to reduce indirect energy consumption 22 and
2 8 and 9
of stakeholders and reductions achieved 23

4.16. Stakeholder engagement 2

Water
4.17. Key topics and concerns raised
2 EN8. Total water withdrawal by source 8 20
through stakeholder engagement
EN9. Water sources affected 8 20
EN10. Water recycled and reused 8 and 9 20
PERFORMANCE INDICATORS
Biodiversity
Management Approach Global Compact Principle Page
EN11. Protected areas 8 31
EC1. Economic value generated and distributed 36
EN12. Impacts on biodiversity 8 29
EC2. Risks and opportunities due to climate change 7 25
EN13. Habitats protected or restored 8 30
EC3. Defined benefit plan 12
EN14. Strategies for managing impacts on biodiversity 8 30
EC4. Financial assistance received from government 36
29 and
EN15. IUCN Red List species 8
30
Market Presence
EC5. Standard entry level wage compared to local Emissions, Effluents, and Waste
12
minimum wage
23 and
EC6. Spending on locally-based suppliers 37 EN16. Direct and indirect greenhouse gas emissions 8
25
EC7. Local hiring 40 EN17. Other relevant indirect greenhouse gas emissions 8 25
EN18. Initiatives to reduce greenhouse gas emissions 7, 8 and 9 25
Indirect Economic Impacts
EN19. Emissions of ozone-depleting substances 8 25
EC8. Development and impact of infrastructure
40
investments EN20. NOx, SOx, and other air emissions 8 25
EN21. Water discharge 8 21

ENVIRONMENTAL PERFORMANCE EN22. Total weight of waste 8 26

EN23. Significant spills 8 27
Management Approach Global Compact Principle Page
27 and
EN24. Transported waste deemed hazardous 8
28
Materials
EN25. Water bodies and related habitats affected 8 29
EN1. Materials 8 24
EN2. Materials used that are recycled input materials 8 and 9 24 Products and Services
Energy EN26. Initiatives to mitigate environmental impacts of 19 and
7, 8 and 9
products and services 32
EN3. Direct energy consumption 8 22
EN27. Products and packaging materials that are
8 and 9 24
EN4. Indirect energy consumption 8 22 reclaimed

GRI CONTENTS>>
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
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GRI CONTENTS
49

LA11. Programs for skills management and lifelong 12 and

Compliance learning 15
24 and 12 and
EN28. Monetary value of significant fines 8 LA12. Performance and career development reviews
33 15

Transport Diversity and Equal Opportunity

23 and 11 and
EN29. Impacts of transporting 8 LA13. Composition of governance bodies 1 and 6
24 13
LA14. Ratio of basic salary of men to women 1 and 6 12
Overall
EN30. Environmental protection expenditures 7, 8 and 9 19

SOCIAL PERFORMANCE – HUMAN RIGHTS

SOCIAL PERFORMANCE - LABOUR PRACTICES AND DECENT WORK Global Compact
Management Approach Principle Page
Management Approach Global Compact Principle Page
Investment and Procurement Practices
Employment
HR1. Percentage and total number of significant investment
1, 2, 3, 4, 5 and 6 37
LA1. Total workforce by employment type and region 11 agreements that include human rights clauses
LA2. Rate of employee turnover 6 11 HR2. Percentage of suppliers that have undergone screening 37 and
1, 2, 3, 4, 5 and 6
and actions taken 38
LA3. Benefits provided to employees 12

Non-discrimination
Labour/Management Relations
HR4. Incidents of discrimination 1, 2 and 6 45
LA4. Collective bargaining agreements 1 and 3 45
After meeting with unions Freedom of Association and Collective Bargaining
LA5. Minimum notice period(s) regarding operational (usually in September),
changes significant changes are informed HR5. Operations in which freedom of association and
1, 2 and 3 45
and discussed collective bargaining may be at risk

Occupational Health and Safety Child Labour

LA6. Workforce represented in formal health and 37 and

1 and 3 16 HR6. Operations identified as having risk of child labour 1, 2 and 5
safety committees 45

LA7. Occupational diseases, lost days, and work

1 16 Forced and Compulsory Labour
related fatalities
LA8. Serious diseases 1 16 HR7. Operations identified as bearing risk of forced or 37 and
1, 2 and 4
compulsory labour 45

Training and Education

Indigenous Rights
11 and
LA10. Average hours of training 6 HR9. Violations involving rights of indigenous people 1 and 2 45
15

GRI CONTENTS >>

SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
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50

SOCIAL PERFORMANCE - SOCIETY SECTOR INDICATORS – MINING AND METALS

Global Compact
Management Approach Principle Page Management Approach Global Compact Principle Page

Revenue Capture, Management, and Distribution

Community
MM1. Local economic contribution and development
SO1. Management of impacts of operations on 37 and 37
impacts
communities 39
MM2. Value added disaggregated 36
Corruption
Biodiversity
SO2. Units analyzed for risks related to corruption 10 45
EN23. Land owned, leased, or managed for production
SO3. Employees trained in anti-corruption policies 10 45 30
activities
SO4. Actions taken in response to incidents of corruption 10 45 MM3. Biodiversity management plans 29

Public Policy Materials

SO5. Participation in public policy development and lobbying 1 and 5 45 MM4. Percentage of products derived from secondary
24
materials
Compliance MM5. Assessing the eco-efficiency 26
SO8. Fines and non-monetary sanctions for noncompliance MM6. Management of residues 26
24
with laws and regulations.
Community
MM7. Incidents affecting communities 1 24

SOCIAL PERFORMANCE – PRODUCT RESPONSIBILITY MM8. Artisanal and small-scale mining No involvement in 2008

Resettlement
Management Approach Global Compact Principle Page
No policies and no such
MM9. Resettlement policies and activities
activities in 2008
Customer Health and Safety
PR1. Impacts assessed 19 Operations Closure

Product and Service Labelling MM10. Operations with closure plans 6

PR3. Product and service information required by procedures 19

Land Rights
PR4. Non-compliance 19
MM11. Local communities’ land and customary rights 45
PR5. Practices related to customer satisfaction 19
Emergency Preparedness
Marketing Communications
MM12. Preparing for emergency situations 29
PR6. Adherence to laws Website
Health and Safety
Compliance
No cases of new diseases in
MM13. New cases of occupational disease
PR9. Fines concerning the provision and use of products None 2008
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
51
Glossary
Added Value: measures the wealth
generated by the company by analyzing
the difference between sales revenue
and the cost of resources acquired from
third parties.
Altered area: environmental area
changed by industrial use.
Blast furnace process: process for
reducing iron ore at high temperatures,
fed by a mixture composed mainly of
coke (derived from coal), whose final
product is pig iron (the raw material for
steelmaking).
CFC (chlorofluorocarbon): are synthetic
chemical substances used in sprays,
refrigerator gases, solvents and fire
extinguishers.
Corporate governance: system by which
companies are run and monitored,
including decision-making and the
relationship between shareholders,
Boards of Directors, management,
independent auditors and fiscal council.
EBITDA: Earnings Before Interests,
Taxes, Depreciation and Amortization.
Demonstrates the company’s
performance by only taking into
consideration the gains generated by its
main activity.
Ecotoxicity: quality control indicator
for effluents and impacts on aquatic
organisms.
Effluent: any type of liquid that leaves
a system, such as pipes, channels or
reservoirs. Industrial effluents are defined
as the discharge of pollutants by industrial
sources. Effluent standard is the quantity
and quality of effluents allowed to be
discharged into a body of water.
FSC: aacronym for Forest Stewardship
Council, an organization that certifies
the responsible management of
Brazilian forest using established
criteria for ecological safeguards, social
benefits and economic viability.
Global Reporting Initiative (GRI): an
international agreement with the
mission of creating and disseminating
the Guide for Preparing Sustainability
Reports, applicable globally and
voluntarily by organizations that wish to
disclose the economic, environmental
and social aspects of their activities,
products and services.
GMB: acronym for Group Management
Board, which meets every week
to manage the ArcelorMittal
Group operations. It includes the
implementation of strategies set forth
by the Board, which closely overviews
the works, and the monitoring of the
adoption of measures determined for
each regional business units.
Greenhouse effect: natural
phenomenon that keeps the Earth
warm, preventing sun rays from being
deflected from the Earth and into
space. However, due to the increase
emissions of CO2 and other gases, such
as methane and CFC, the greenhouse
effect has been on the rise, leading to
the global warming phenomenon.
Ibama: Brazilian Institute for the
Environment and Renewable Natural
Resources.
NGO: a non-governmental organization
whose non-profit activities are focused
on public actions, especially on services
considered important for social
development.
Opacity: measurement of the coefficient
of light absorption of emitted gases; the
more opaque, the higher the presence of
particulate matter. A dark smoke indicates
pollution caused by improper maintenance
of engines.
Public hearing: meeting with society
representatives for presenting and
discussing projects that impact the
environment and which is part of the
licensing process of these projects by
environmental agencies.
Rehabilitated area: environmental
area rehabilitated by remediation,
decontamination or contention/isolation
of contaminated areas, allowing new
uses without any risk to human health
and ensuring economic productivity and
social functions.
Specific consumption: measurement of
the consumption of an element (such
as energy or water) for obtaining a
specific product.
Steel slag: steelmaking byproduct
resulting from the accumulation of
various elements that should not
be present in the final product. It is
composed of various oxides, such as
CaO and MgO, and is expandable due to
their chemical reactions. Its limitations
are basically: heterogeneity, high
content of free lime and absence of
hydraulic activity.
Stakeholders: interested parties, that
is, individuals or organizations involved
directly or indirectly, or whose interests
could be positively or negatively
affected by the company’s activities.
Report Profile
GLOSSARY
Sustainability: according to the
document entitled Our Common Future,
also known as the Brundtland report,
of the United Nations (UN), published
in 1987, is “meeting the needs of the
present without compromising the
ability of future generations to meet
their own needs.”
UN: acronym for United Nations,
international institution formed by
sovereign states created with the
goal of promoting peace and safety in
the world, fostering cordial relations
between nations; promoting social
progress, better living standards and
human rights.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
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52

Awards and Recognitions

The Best Companies to Work for (Top 10) – Guia Você S/A and Revista Exame

The Best in People Management – Valor Econômico newspaper

Época Prize on Climate Change (Leading Company category) – PriceWaterhouseCoopers and Época magazine

Environmental Benchmarking Ranking Brazil – Mais Atitude Instituto Socioambiental

Minas Gerais Award on Environmental Management – Brazilian Quality Union (UBQ)

Credits
Action for Water Award – Inter-municipal Council, Drainage Basins of Rivers Piracicaba, Capivari and Jundiaí (PCJ)

Ecology Award 2008 – Espírito Santo State Secretariat of the Environment and Water Resources and State Institute for ArcelorMittal Brasil
the Environment
Corporate Center: Av. Carandaí, 1115
Findes Consuma Award 2008 (Social Responsibility category) – Federation of Industries, Espírito Santo CEP 30130-915 – Belo Horizonte – MG – Brazil
Tel. + 55 31 3219-1122
Socio-Environmental Commitment Certificate – Instituto Falcão Bauer de Qualidade
IFBQ Ecological Label – Instituto Falcão Bauer da Qualidade General Coordination: Office of Communication and Institutional Relations

Green Profile Medal – partnership Prosul Consultoria Ambiental, Editora L. and Casa da Moeda do Brasil
Fritz Muller Prize (Environmental Management category) – Santa Catarina Foundation for the Environment (Fatma)
Expressão Award on Ecology (Tourism and Life Quality category) – Editora Expressão
ADBV Citizen Company Award (Environmental Preservation category) – Brazilian Association of Sales and
Marketing Managers, Santa Catarina
Ilafa Advertising Award 2008 (Web Page category) – Latin American Iron and Steel Institute (Ilafa)
Make a Difference Award (Social Purpose category) – O Globo newspaper
Information and indicator: Working Group – Communication for
Sustainability
Contents, edition and design: Report Comunicação
Photos: ArcelorMittal Archives
Specific or complementary information for each subsidiary may be obtained on
the Internet at www.arcelor.com/br. For questions, comments or complaints,
please contact the Office of Communication and Institutional Relations,
ArcelorMittal Brasil, email comunicacao.corporativa@arcelormittal.com.br

Health and Safety Top Management Award (Bronze category) – Brazilian Safety Agency

UN Human Settlements Programme, for practices improving living conditions of populations – United Nations