ArcelorMittal

HISTORY

O kompaniji

Metal-genetic iron ore area "Ljubija" is situated in the North East of the Republic of Bosnia and Herzegovina, in the valleys of rivers Sana, Una and Gomjenica, between mountains Kozara and Grmec. The center of the basin is town of Prijedor. This metalliferous area consists of 1200 square km. So far, only 10 percent of this area has been explored. According to geological assessments there are around 347m tonnes of oxide (limonite) and carbon ores reserves. Three capacities for exploitation and preparation of ore, situated 15 to 17 km away from Prijedor have been built so far.

Mining and iron ore excavating has begun in the years before Christ in this area, according to written documents. The first miners were Phoenicians and Illyrians. Romans excavated and smelted iron ore for over 400 years in Ljubija and they transported iron bars to places where they were further processed by using roads and rivers of Sana, Una, Sava, and Danube.

In the middle ages, iron ore was smelted in this area, which is confirmed by the remains of primitive smelting plants. Industrial production of iron ore has been ongoing for 92 years. In 1916, the mine Ljubija was opened and the industrial production of iron ore started.

The mine was opened by Austro-Hungarian Monarchy during the World War I. The primary project included mining premises, roads and other infrastructure needed. At the time, they built 19 km of industrial narrow-gauge railway from Ljubija to Prijedor, 12.5 km long macadam road from Ljubija to Prijedor, and ore trans-shipment facility in Prijedor. It was used for trans-shipment of the ore to standard railway, which was previously built during Turkish Empire in 1873.

In 1967, the mine Tomasica was opened and in 1985 the mine Omarska. All three mines were working as a part of the company “Rudnici zeljezne rude Ljubija” in Prijedor. Since 1916, over 80m tonnes of iron ore have been produced in this area. The maximum volume of the production was reached in Ljubija mines (in all three mines) in 1988 and it was as follows:
Crude ore 4,198,273 tonnes
Commercial ore 3,552,660 tonnes
Over burden 13,768,768 tonnes.

The Ljubija mines suspended operations in April 1992 due to the war in Bosnia and Herzegovina. After the end of the war and the fall of Yugoslavia, this company was not in a position to resume production due to the fragmentation of the market, the transition and the lack of the resources. Only after 12 years did the company LNM (now ArcelorMittal) enable the restart of the production, after they reached strategic agreement with "Rudnici željezne rude Ljubija" about the establishment of the new company named “Novi rudnici Ljubija“. The contract was based on parity of 51:49 percent for LNM. The joint company was registered on August 12, 2004.The production was successfully continued in Omarska, while the other two mines are still closed, although larger amounts of iron ore of different quality were discovered there.

Till July 19, 2006 the company was registered as "Mittal Mines Prijedor", now the official name of the company is “ArcelorMittal Prijedor.

Commercial production and shipping of iron ore concentrate in „Omarska“Mines has started in December 17, 2004. This was the great achievement of Ljubija miners, who managed to perform remount of their mines, destroyed by time and war, much before the given deadlines. Since then, the production and shipping has been in progress continuously. In previous times, iron ore concentrate was shipped to ArcelorMittal steel plants in Poland, Czech Republic, and Romania. The final objective is to ship the largest amount of produced ore to ArcelorMittal Zenica in Bosnia and Herzegovina, which would have joint economic effects with cuts in costs of transport, as the distance between mines and steel plant is around 300km.