The steel factory ArcelorMittal Zenica is owned by the world largest steel producer – the ArcelorMittal Corporation. The factory, originally state-owned was privatized and Arcelor-Mittal is now the main shareholder, with the government owning a symbolic share. In July 2008, the factory restarted integrated steel production after the facilities were damaged and closed down during the Yugoslavian civil war in the 1990s. ArcelorMittal Zenica produces hot rolled products (rebars, wire rod, mesh, lattice girders, and classic construction armature) mainly for the Balkan, EU and North African markets. The town is located in a small, narrow valley – 14 kilometres from Janić to Vranduk, and is in between two mountains that are less than 2 kilometres apart. Because of this from November to February, a toxic cloud forms over the city which traps all the substances rising from the chimneys of steel plants and the other factories. Since 2008, the analyses of air quality showed that pollution in Zenica was exceeding EU and Bosnia and Herzegovina standards, often reaching alarming levels. An increase in the number of cancer diseases among the population of Zenica has also been recorded according to a 2011 report on the population's health, conducted by the Cantonal Institute for Public Health. The report revealed some alarming statistics: In the period between 2002 and 2011, tumors have become the second leading cause of death among residents with a striking 20%. According to the report, the number of cancer patients increased from 892 persons in 2002 to 1,888 in 2010 and 1,774 in 2011. The number of cancer patients has increased by the hundreds each year, and especially from 2007 onward, i.e. since the full production of steel was resumed [1] however there are diverging opinions about how much of the epidemic can be blamed on the steel plant. In December 2012, after a several years of sending demand letters for installation of filters in the plants, the citizens of Zenica organised a large protest attended by several thousand people. Citizens demand filters for the smoke stacks to reduce toxic gases and heavy metals; as well as an independent, publicly- controlled center for monitoring emissions led by the local university and the local government. The latter would be supplemented by a public mechanism of measuring the emissions as well as an alarm system that would alert the population whenever emissions exceed safety limits [2]. On the 15th of November 2013, ArcelorMittal, has finally installed a filter in blast furnace and proudly announced this would lower their emissions below the acceptable levels. In this way the company admitted they have been breaking the law over the years. They did this at the official ceremony attended by representatives of cantonal and local authorities in charge of making and enforcing those laws. Citizens considered ArcelorMittal should not be acknowledged for installing the filter, as the damage has already been done. However, the company failed to give an apology to the citizens for doing so. The citizens wonder why this was not done before, as the investment of 12 million BAM ($ 8,500,000) for the filters represent a low level investment to ArcelorMittal, having in mind it is a third most profitable company in Bosnia. Even though the installation of the filter should have kept the pollution within the prescribed legal norms, on 17th of December 2013, the measuring station in Zenica have recorded 1,392 mg of SO2 in the air. According to Environmental Protection Department of the Municipality of Zenica, citizens have great impact on the elevated concentrations of SO2 in the air and they were advised to minimize burning coal for heating, and use of the family vehicle. Samir Lemeš from EJO Eko Forum has responded that citizens of Zenica burn coal as the alternative to central heating as ArcelorMittal (who provides heating for the municipality) has the highest heating costs in the region. The Municipality claims they cannot control the pollution coming from ArcelorMittal as it is in jurisdiction of the federal environmental inspection. In 2015, NGO "Eko forum" filed a criminal charges against the company and the relevant federal authorities given the continuous high level of air pollution and the fact that their comments and suggestions in the process of ArcelorMittal environmental permit renovation were ignored. This is the first charge for environmental crimes in B&H. The plant was operating without some of the required environmental permits since December 2014, other permits expired in November 2015. In January 2016, another lawsuit was filed against the Federal ministry of Environment and Tourism of B&H, this time by the authorities of the city of Zenica. (See less) |
The citizens of Zenica are not convinced with the ArcelorMittal steel factory claims about the intentions to seriously invest in environmental improvements given that the Zenica’s air is still one of the most polluted in B&H.
The steel factory ArcelorMittal Zenica is owned by the world largest steel producer – the ArcelorMittal Corporation. The factory, originally state-owned was privatized and Arcelor-Mittal is now the main shareholder, with the government owning a symbolic share. |
| Name | ArcelorMittal steel production factory, Zenica, Bosnia and Herzegovina |
| Country | Bosnia and Herzegovina |
| Province | Zenica-Doboj Canton |
| Site | Zenica |
| Accuracy of Location | HIGH local level |
| Type of Conflict (1st level) | Industrial and Utilities conflicts |
| Type of Conflict (2nd level) | Metal refineries |
| Specific Commodities | Central heating Steel |
| Project Details | Production capacity= 1,000,000 tonnes of steel Employees= 3,000 people The plant produced 700,000 tonnes in 2012. ArcelorMittal acquired 51 per cent of BH Steel in August 2004. As part of the agreement with the government of the Federation of Bosnia-Herzegovina and the Kuwaiti Investment Agency, ArcelorMittal agreed to invest $80 million in new share capital, $65 million in working capital and a further $135 million on new plant and equipment over ten years. Data from the Register of plants and pollution of the Federal Ministry of Environment and Tourism -made publicly available in 2016 in a joint activity by several B&H's NGOs including Eko forum-, show that Mittal factory sent a total of 815,098 tons of coal in in 2014, which resulted in 4.5 million kilograms of CO2 released into the atmosphere. This is 40 times bigger amount of coal than used for households heating in Zenica and 29 times more than a total amount of coal from all sources (households and other industrial polluters). Mittal release in the atmosphere around 375,000 kg of SO2 monthly. |
| Project Area (in hectares) | 50,000 |
| Level of Investment (in USD) | 280,000,000 |
| Type of Population | Urban |
| Potential Affected Population | 150,000 |
| Start Date | 2008 |
| Company Names or State Enterprises | Arcelor Mittal from Luxembourg |
| Relevant government actors | The City of Zenica; Government of Bosnia and Herzegovina; Ministry of Environment Protection of Bosnia and Herzegovina |
| International and Financial Institutions | European Bank for Reconstruction and Development (EBRD) - In 2005 approved a 25 million euros loan to ArcelorMittal for improving its production. |
| Environmental justice organisations and other supporters | Eko forum Zenica http://www.ekoforumzenica.ba/; Farmers association of the Zenica-Doboj Canton; Czech NGO "Arnika" http://www.english.arnika.org/ |
| Intensity of Conflict (at highest level) | MEDIUM (street protests, visible mobilization) |
| When did the mobilization begin | Mobilization for reparations once impacts have been felt |
| Groups Mobilizing | Farmers Industrial workers International ejos Local ejos Local government/political parties Neighbours/citizens/communities Social movements Trade unions Women Local scientists/professionals |
| Forms of Mobilization | Community-based participative research (popular epidemiology studies, etc..) Creation of alternative reports/knowledge Development of a network/collective action Development of alternative proposals Involvement of national and international NGOs Lawsuits, court cases, judicial activism Media based activism/alternative media Objections to the EIA Official complaint letters and petitions Public campaigns Street protest/marches On line petition https://secure.avaaz.org/en/petition/local_government_of_the_city_Zenica_BH_and_managers_of_ArcelorMittal_decrease_air_pollution_in_Zenica/, social media activism |
| Environmental Impacts | Visible: Food insecurity (crop damage), Loss of landscape/aesthetic degradation, Soil contamination, Biodiversity loss (wildlife, agro-diversity), Global warming, Noise pollution, Surface water pollution / Decreasing water (physico-chemical, biological) quality, Air pollution Potential: Groundwater pollution or depletion |
| Other | The pollution in Zenica is easily perceived as the city’s windows and balconies are constantly covered in black dust. PM 10 and SO2 have repeatedly exceeded 'alert' levels where according to the The Federation of BiH’s air pollution legislation, the acceptable concentration of sulfur-dioxide in the air is 350 micrograms, and Zenica’s air reached 1,392 mg per cubic meter. In addition to these harmful pollutants Zenica citizens are most concerned about carcinogenic air pollutant benzene and volatile organic compounds. |
| Health Impacts | Visible: Deaths, Other environmental related diseases, Other Health impacts, Exposure to unknown or uncertain complex risks (radiation, etc…), Mental problems including stress, depression and suicide |
| Other | In the industrial district of Zenica the number of tumors have increased alarmingly over the last ten years. Chronic pneumonia and bronchitis, sarcoidosis. |
| Socio-economic Impacts | Visible: Loss of landscape/sense of place Potential: Displacement, Increase in Corruption/Co-optation of different actors, Lack of work security, labour absenteeism, firings, unemployment, Loss of livelihood |
| Other | Heavy metals (lead, cadmium and arsenic) have been found in vegetables and milk produces in Zenica. Many people in this area live form selling vegetables. |
| Project Status | In operation |
| Pathways for conflict outcome / response | Environmental improvements, rehabilitation/restoration of area Court decision (undecided) Technical solutions to improve resource supply/quality/distribution Application of existing regulations |
| Development of Alternatives | The citizens of Zenica demand emissions monitoring by third party, and installation of filters on the plant according to the current legislation that proclaims use of the best available technology (BAT) in order to comply with environmental standards and to obtain a proper environmental permit. The closing of the plant is not being considered as it supplies Zenica with heating and provides employment to number of people from the area. |
| Do you consider this as a success? | No |
| Why? Explain briefly. | The claims of the company from 2008, that the plant will comply with EU environmental standards by 2012, never came true. Finally, on 15th of November 2013, ArcelorMittal, has installed a filter ($ 8,500,000) in blast furnace. However, on 17th of December 2013, the concentration of SO2 in the air reached a record 1,392 mg. The pollution continued in 2014 and 2015, while company claims that the delay in improvements of its ecological performance is caused by the fact that it inherited very old equipment and huge technological challenges hard to overcome fast. In addition, in the past years steel plants in Europe faced serious market challenges, which further hinders investment in environmental improvements. The entire process is helped by the fact that implementation and compliance with the Environmental laws in B&H is at a low level. |
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| Contributor | Jovanka Spiric, Universitat Autònoma de Barcelona, vankajo(at)gmail.com |
| Last update | 24/05/2016 |