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118-488: ArcelorMittal S.A. is a Luxembourg-based multinational steel manufacturing corporation headquartered in Luxembourg City . It was formed in 2006 from the takeover and merger of Arcelor by Indian-owned Mittal Steel . ArcelorMittal is the second largest steel producer in the world , with an annual crude steel production of 78 million metric tonnes as of 2022. It is ranked 197th in the 2022 Fortune Global 500 ranking of

236-615: A $ 913 million joint venture to export a fifth of the auto-grade steel made by the venture. In March 2017, the company proposed a new US$ 6.5 billion steel project in Karnataka , after entering into a pact with the Karnataka government in February 2017. In April 2017, Sanjeev Gupta 's Liberty House Group announced it had agreed to acquire ArcelorMittal's Georgetown Steelworks in South Carolina . It

354-516: A 33% to 40% recovery of magnetite by weight, to produce a concentrate grading in excess of 64% iron by weight. The typical magnetite iron ore concentrate has less than 0.1% phosphorus , 3–7% silica , and less than 3% aluminium . As of 2019, magnetite iron ore is mined in Minnesota and Michigan in the United States , eastern Canada , and northern Sweden . Magnetite-bearing banded iron formation

472-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

590-684: A benchmark to be followed by the rest of the industry. Singapore Mercantile Exchange (SMX) has launched the world's first global iron ore futures contract, based on the Metal Bulletin Iron Ore Index (MBIOI) which uses daily price data from a broad spectrum of industry participants and independent Chinese steel consultancy and data provider Shanghai Steelhome's widespread contact base of steel producers and iron ore traders across China. The futures contract has seen monthly volumes over 1,500,000 t (1,500,000 long tons; 1,700,000 short tons) after eight months of trading. This move follows

708-498: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

826-541: A focus on higher-value forms of steel". Chairman Lakshmi Mittal announced doubled earnings the following year in May 2017. Along with the increase in capital, the company also sold its 35% stake in Gestamp Automacion for $ 979 million, with the goal of reducing ArcelorMittal's debt to less than $ 12 billion. By February 2016, the company made about 6% of the world's steel. It ranked 108th in the 2016 Fortune Global 500 ranking of

944-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

1062-487: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

1180-540: A new joint venture. The facility was renamed AM/NS Calvert through the 50/50 joint partnership with Nippon Steel & Sumitomo Metal Corp. The firm also entered into a $ 2.2 billion contract to develop an iron ore deposit in Senegal . This included construction of a 750 km (466 mi) railway line. After it stalled on the contract and failed to build according to schedule, the Government of Senegal sued. In September 2013,

1298-424: A premium price. Due to the high density of hematite relative to associated silicate gangue, hematite beneficiation usually involves a combination of beneficiation techniques. One method relies on passing the finely-crushed ore over a slurry containing magnetite or other agent such as ferrosilicon which increases its density. When the density of the slurry is properly calibrated, the hematite will sink and

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1416-453: A relatively low-grade ore, they are also inexpensive to collect, as they do not have to be mined. Because of this, companies such as Magnetation have started reclamation projects where they use iron ore tailings as a source of metallic iron. The two main methods of recycling iron from iron ore tailings are magnetizing roasting and direct reduction. Magnetizing roasting uses temperatures between 700 and 900 °C (1,292 and 1,652 °F) for

1534-600: A source of iron ore. Prior to the industrial revolution, most iron was obtained from widely-available goethite or bog ore , for example, during the American Revolution and the Napoleonic Wars . Historically, much of the iron ore utilized by industrialized societies has been mined from predominantly hematite deposits with grades of around 70% Fe. These deposits are commonly referred to as "direct shipping ores" or "natural ores". Increasing iron ore demand, coupled with

1652-597: A switch to index-based quarterly pricing by the world's three largest iron ore miners— Vale , Rio Tinto , and BHP —in early 2010, breaking a 40-year tradition of benchmark annual pricing. Iron is the most abundant element on earth but not in the crust. The extent of the accessible iron ore reserves is not known, though Lester Brown of the Worldwatch Institute suggested in 2006 that iron ore could run out within 64 years (that is, by 2070), based on 2% growth in demand per year. Geoscience Australia calculates that

1770-418: A time of under 1 hour to produce an iron concentrate (Fe 3 O 4 ) to be used for iron smelting. For magnetizing roasting, it is important to have a reducing atmosphere to prevent oxidization and the formation of Fe 2 O 3 because it is harder to separate as it is less magnetic. Direct reduction uses hotter temperatures of over 1,000 °C (1,830 °F) and longer times of 2–5 hours. Direct reduction

1888-655: A typically titanium -bearing magnetite, often with vanadium . These ores form a niche market, with specialty smelters used to recover the iron, titanium, and vanadium. These ores are beneficiated essentially similarly to banded iron formation ores, but usually are more easily upgraded via crushing and screening . The typical titanomagnetite concentrate grades 57% Fe, 12% Ti, and 0.5% V 2 O 5 . For every one ton of iron ore concentrate produced, approximately 2.5–3.0 tons of iron ore tailings will be discharged. Statistics show that there are 130 million tons of iron ore tailings discharged every year. If, for example,

2006-632: A value of $ 2.3 billion. 46% of Canada's iron ore comes from the Iron Ore Company of Canada mine, in Labrador City , Newfoundland , with secondary sources including the Mary River Mine in Nunavut . According to the U.S. Geological Survey's 2021 Report on iron ore, India is estimated to produce 59,000,000 t (58,000,000 long tons; 65,000,000 short tons) of iron ore in 2020, placing it as

2124-511: Is a high-volume, low-margin business, as the value of iron is significantly lower than base metals. It is highly capital intensive, and requires significant investment in infrastructure such as rail in order to transport the ore from the mine to a freight ship. For these reasons, iron ore production is concentrated in the hands of a few major players. World production averages 2,000,000,000 t (2.0 × 10 long tons; 2.2 × 10 short tons) of raw ore annually. The world's largest producer of iron ore

2242-428: Is expected to rise by a CAGR of 2% between 2023 and 2027, and industry analyst Fitch Solutions forecasted in 2021 that Brazil's annual production will reach 592,000,000 t (583,000,000 long tons; 653,000,000 short tons) by 2030. In 2017, Canadian iron ore mines produced 49,000,000 t (48,000,000 long tons; 54,000,000 short tons) of iron ore in concentrate pellets and 13.6 million tons of crude steel. Of

2360-510: Is followed by Japan and Korea, which consume a significant amount of raw iron ore and metallurgical coal . In 2006, China produced 588,000,000 t (579,000,000 long tons; 648,000,000 short tons) of iron ore, with an annual growth of 38%. Over the last 40 years, iron ore prices have been decided in closed-door negotiations between the small handful of miners and steelmakers which dominate both spot and contract markets. Until 2006, prices were determined in annual benchmark negotiations between

2478-586: Is in the iron ranges around Lake Superior . These iron ranges occur in Minnesota and Michigan, which combined accounted for 93% of the usable iron ore produced in the United States in 2014. Seven of the nine operational open pit mines in the United States are located in Minnesota as well as two of the three tailings reclamation operations. The other two active open pit mines were located in Michigan . In 2016, one of

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2596-693: Is mined extensively in Brazil as of 2019, which exports significant quantities to Asia , and there is a nascent and large magnetite iron ore industry in Australia . Direct-shipping iron ore (DSO) deposits (typically composed of hematite ) are currently exploited on all continents except Antarctica , with the largest intensity in South America , Australia, and Asia. Most large hematite iron ore deposits are sourced from altered banded iron formations and (rarely) igneous accumulations. DSO deposits are typically rarer than

2714-558: Is not only the single primary steel mill Mittal operates in Italy but also the largest employer in Taranto. On 28 September 2020, the company sold its US business to Cleveland-Cliffs for approximately $ 1.4 billion. Lakshmi Mittal (owner of Mittal Steel) is the executive chairman. His family owns 40% of the shares and voting shares in the company. After a $ 3 billion rights issue earlier in April 2016,

2832-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

2950-487: Is ranked 123 in the 2017 Fortune Global 500 ranking of the world's biggest corporations. By March 2017, ArcelorMittal was leading a consortium bidding for Ilva . An Italian company, Ilva owns the Taranto steelworks in southern Italy , which has Europe's largest steel output. The steelworks had been accused of toxic emissions linked to local cancer rates, and had been nationalized by the government years prior. The buyers were

3068-456: Is the raw material used to make pig iron , which is one of the main raw materials to make steel —98% of the mined iron ore is used to make steel. In 2011 the Financial Times quoted Christopher LaFemina, mining analyst at Barclays Capital, saying that iron ore is "more integral to the global economy than any other commodity, except perhaps oil ". Metallic iron is virtually unknown on

3186-476: Is the Brazilian mining corporation Vale , followed by Australian companies Rio Tinto Group and BHP . A further Australian supplier, Fortescue Metals Group Ltd, has helped bring Australia's production to first in the world. The seaborne trade in iron ore—that is, iron ore to be shipped to other countries—was 849,000,000 t (836,000,000 long tons; 936,000,000 short tons) in 2004. Australia and Brazil dominate

3304-425: Is used to produce sponge iron (Fe) to be used for steel-making. Direct reduction requires more energy, as the temperatures are higher and the time is longer and it requires more reducing agent than magnetizing roasting. Lower-grade sources of iron ore generally require beneficiation , using techniques like crushing, milling , gravity or heavy media separation , screening, and silica froth flotation to improve

3422-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

3540-930: The British East India Company founded in 1600 and the Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

3658-878: The Chichester Range , the Hamersley Range and Koolyanobbing , Western Australia . Other types of ore are coming to the fore recently, such as oxidised ferruginous hardcaps, for instance laterite iron ore deposits near Lake Argyle in Western Australia. The total recoverable reserves of iron ore in India are about 9,602,000,000 t (9.450 × 10 long tons; 1.0584 × 10 short tons) of hematite and 3,408,000,000 t (3.354 × 10 long tons; 3.757 × 10 short tons) of magnetite . Chhattisgarh , Madhya Pradesh , Karnataka , Jharkhand , Odisha , Goa , Maharashtra , Andhra Pradesh , Kerala , Rajasthan , and Tamil Nadu are

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3776-598: The Earth 's surface except as iron-nickel alloys from meteorites and very rare forms of deep mantle xenoliths . Although iron is the fourth-most abundant element in the Earth's crust , composing about 5%, the vast majority is bound in silicate or, more rarely, carbonate minerals, and smelting pure iron from these minerals would require a prohibitive amount of energy. Therefore, all sources of iron used by human industry exploit comparatively rarer iron oxide minerals, primarily hematite . Prehistoric societies used laterite as

3894-555: The Pilbara region of Western Australia is approximately 844,000,000 t (831,000,000 long tons; 930,000,000 short tons) per year and rising. Gavin Mudd ( RMIT University ) and Jonathon Law ( CSIRO ) expect it to be gone within 30–50 years and 56 years, respectively. These 2010 estimates require ongoing review to take into account shifting demand for lower-grade iron ore and improving mining and recovery techniques (allowing deeper mining below

4012-817: The government of Senegal won a court case before an international tribunal to rescind a $ 2.2 billion deal with ArcelorMittal after the company suspended work on an iron ore mine in the country. In June 2014, the International Chamber of Commerce's arbitration court in Paris awarded Senegal $ 150 million. Dealing with price and demand fluctuations in the steel market, from 2012 to 2014 ArcelorMittal restructured its European division by reducing employee numbers and closing plants. In May 2014, ArcelorMittal, citing economic self-interest, declared its opposition to sanctions on Russia. As of June 2014, ArcelorMittal accounted for 7 per cent of world steel production. After being shut out of

4130-407: The silicate mineral fragments will float and can be removed. Iron is the world's most commonly used metal—steel, of which iron ore is the key ingredient, represents almost 95% of all metal used per year. It is used primarily in structures, ships, automobiles, and machinery. Iron-rich rocks are common worldwide, but ore-grade commercial mining operations are dominated by the countries listed in

4248-420: The 13,600,000 t (13,400,000 long tons; 15,000,000 short tons) of steel 7,000,000 t (6,900,000 long tons; 7,700,000 short tons) was exported, and 43,100,000 t (42,400,000 long tons; 47,500,000 short tons) of iron ore was exported at a value of $ 4.6 billion. Of the iron ore exported, 38.5% of the volume was iron ore pellets with a value of $ 2.3 billion, and 61.5% was iron ore concentrates with

4366-650: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

4484-680: The 62–64% Fe range. Granite and ultrapotassic igneous rocks were sometimes used to segregate magnetite crystals and form masses of magnetite suitable for economic concentration. A few iron ore deposits, notably in Chile , are formed from volcanic flows containing significant accumulations of magnetite phenocrysts . Chilean magnetite iron ore deposits within the Atacama Desert have also formed alluvial accumulations of magnetite in streams leading from these volcanic formations. Some magnetite skarn and hydrothermal deposits have been worked in

4602-700: The AM Investco consortium, which beyond ArcelorMittal included Marcegaglia and Banca Intesa Sanpaolo . In May 2017, ArcelorMittal was announced as the preferred bidder over a different consortium led by JSW Steel , after it was able to pledge a production increase and guarantee employment levels. The final decision was waiting on Italy's ministry of economic development. On 5 June 2017, ArcelorMittal won approval to purchase Ilva for €1.8 billion. In its bid, AM Investco had pledged to make investments into Ilva of €2.4bn until 2023. On 1 November 2018, ArcelorMittal assumed ownership of Ilva steel operations and ArcelorMittal Italia

4720-520: The CAGR of −7.2% since 4Q'18. The company is involved in research and development , mining , and steel . ArcelorMittal in 2016 produced around 90 million tons of steel. As of May 2017, the company made 200 unique steel grades for automotive purposes, half of which were introduced since 2007. Among the steel varieties are Usibor 2000, which the company announced in June 2016 and released later that year. Upon release,

4838-641: The Chinese steel industry in 2005, along with other foreign companies, in 2014 the company announced it was planning new plants in China. In 2014, the company had an annual crude steel production of 98.1 million tons. Following an investigation first launched in 2008, in August 2016 the Competition Commission (South Africa) found the company guilty of price fixing. ArcelorMittal was fined US$ 110.9 million and, as part of

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4956-546: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

5074-578: The Ilva lease agreement, citing as reasons that the Italian Parliament had removed the legal protection necessary for the company to implement its environmental plan without the risk of criminal liability and that a recent decision by the criminal court of Taranto would effectively force Mittal to close blast furnace #2 by 13 December 2019. A legal and media battle with the Italian state started immediately, as Ilva

5192-557: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

5310-505: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

5428-545: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

5546-458: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

5664-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

5782-429: The United States is estimated to have accounted for 2% of the world's iron ore output. In the United States there are twelve iron ore mines, with nine being open pit mines and three being reclamation operations. There were also ten pelletizing plants, nine concentration plants, two direct-reduced iron (DRI) plants, and one iron nugget plant that were operating in 2014. In the United States the majority of iron ore mining

5900-527: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

6018-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

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6136-609: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

6254-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

6372-610: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

6490-738: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

6608-498: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

6726-462: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

6844-420: The city of Temirtau , Kazakhstan where an ArcelorMittal plant is located. Local citizens complained that the pollution was caused by an ArcelorMittal plant. A spokesperson for ArcelorMittal explained that the discoloration of the snow was caused by a lack of wind which would otherwise blow the pollution away. On 4 November 2019, Arcelor Mittal (Am Investco Italy) sent to Ilva's Commissioners a notice to terminate

6962-728: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

7080-650: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

7198-476: The company by 21 April 2016 had a share value of 16,616 million euros, distributed in 3,065,710,869 shares. Acquired by Mittal Steel Company : Acquired by Arcelor : Comprised as follows by nine people as of June 2017: As of 2012, the company had thousands of workers at 12 major facilities in the United States, in states such as Indiana, Ohio and Pennsylvania. All non-salary employees in North America, with

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7316-508: The company due to economic reasons, including LTV Steel in Hennepin, Illinois . After purchase of Kryvorizhstal , Ukraine's largest steel producer, employment was scaled back from 57,000 employees to 30,000. In 2010, the company's operating income had fallen to $ 4.9 billion, with sales down 10 per cent from the year earlier, and income down 50 per cent as steel prices slumped. In 2011, the company began curtailing its European production to match

7434-594: The company reported a third-quarter loss of $ 709 million as compared to a $ 659 million profit for the same period a year ago, citing the slow down in China 's economy . In 2012 ArcelorMittal had $ 22 billion of debt. In January 2013, ArcelorMittal bid $ 1.5 billion to acquire ThyssenKrupp AG's rolling mill in Calvert, Alabama , United States. On 26 February 2014, ThyssenKrupp sold their Calvert carbon steel facility to ArcelorMittal and Nippon Steel for $ 1.55 billion, as

7552-508: The company the "worst performer" in the FTSEurofirst300 index. The CEO said the company had performed poorly in 2015 due to "Chinese exports depressing prices". Early in 2016, the company announced it had raised $ 3 billion in new investment capital to help reduce debt to $ 11.7 billion of debt. In early 2016 the company also announced a program to boost core profit by $ 3 billion by 2020 "through a mixture of cost-cutting, increased production and

7670-411: The concentration of the ore and remove impurities. The results, high-quality fine ore powders, are known as fines. Magnetite is magnetic , and hence easily separated from the gangue minerals and capable of producing a high-grade concentrate with very low levels of impurities. The grain size of the magnetite and its degree of commingling with the silica groundmass determine the grind size to which

7788-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

7906-533: The country's " economic demonstrated resources " of iron currently amount to 24 gigatonnes , or 24,000,000,000 t (2.4 × 10 long tons; 2.6 × 10 short tons). Another estimate places Australia's reserves of iron ore at 52,000,000,000 t (5.1 × 10 long tons; 5.7 × 10 short tons), or 30% of the world's estimated 170,000,000,000 t (1.7 × 10 long tons; 1.9 × 10 short tons), of which Western Australia accounts for 28,000,000,000 t (2.8 × 10 long tons; 3.1 × 10 short tons). The current production rate from

8024-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

8142-912: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Iron ore Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the form of magnetite ( Fe 3 O 4 , 72.4% Fe), hematite ( Fe 2 O 3 , 69.9% Fe), goethite ( FeO(OH) , 62.9% Fe), limonite ( FeO(OH)·n(H 2 O) , 55% Fe), or siderite ( FeCO 3 , 48.2% Fe). Ores containing very high quantities of hematite or magnetite, typically greater than about 60% iron, are known as natural ore or direct shipping ore , and can be fed directly into iron-making blast furnaces . Iron ore

8260-584: The depletion of high-grade hematite ores in the United States, led after World War II to the development of lower-grade iron ore sources, principally the use of magnetite and taconite . Iron ore mining methods vary by the type of ore being mined. There are four main types of iron ore deposits worked currently, depending on the mineralogy and geology of the ore deposits. These are magnetite, titanomagnetite , massive hematite, and pisolitic ironstone deposits. The origin of iron can be ultimately traced to its formation through nuclear fusion in stars, and most of

8378-558: The end of 2008, the company reported operating income of around $ 12 billion. In December 2008, ArcelorMittal announced several plant sales, to which it had been ordered by U.S. antitrust authorities as a condition of approval of Mittal Steel’s takeover of Arcelor SA, including the Bethlehem Steel plant in Lackawanna, New York , to the Russian company Severstal . Other plants were closed by

8496-675: The exception of the Dofasco facility in Hamilton, Ontario, are represented by the United Steelworkers union, the largest industrial union in North America. Also, at the time around 100,000 of the company's 260,000 employees were in Europe. As of 31 December 2013, the company employed over 232,000 people, of which 37% were in the EU, with a further 16% in non-EU European countries, 17% in Asia, 16% in North America,

8614-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

8732-442: The gangue is separated during the beneficiation process and is removed as tailings . Taconite tailings are mostly the mineral quartz , which is chemically inert. This material is stored in large, regulated water settling ponds. The key parameters for magnetite ore being economic are the crystallinity of the magnetite, the grade of the iron within the banded iron formation host rock, and the contaminant elements which exist within

8850-789: The groundwater table). Brazil is the second-largest producer of iron ore after Australia, accounting for 16% of the world's iron ore production. After a somewhat sluggish production volume 2010-2020, partly due to the Mariana dam disaster in 2015 and the Brumadinho dam disaster in 2019, which halted the production at the two involved mines, production has increased steadily since 2021, when Brazil produced 431,000,000 t (424,000,000 long tons; 475,000,000 short tons). In 2022 it increased to 435,000,000 t (428,000,000 long tons; 480,000,000 short tons) and in 2023 to 440,000,000 t (430,000,000 long tons; 490,000,000 short tons). The Brazilian production

8968-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

9086-524: The high-strength automotive steel was said to be about one-third stronger than other steels then available for carmaking. Multinational corporation Most of the current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were

9204-566: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

9322-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

9440-450: The iron and carbon smelting must be kept in an oxygen-deficient (reducing) state to promote the burning of carbon to produce CO and not CO 2 . The inclusion of even small amounts of some elements can have profound effects on the behavioral characteristics of a batch of iron or the operation of a smelter. These effects can be both good and bad, some catastrophically bad. Some chemicals are deliberately added, such as flux, which makes

9558-413: The iron from the oxygen, a stronger elemental bond must be presented to attach to the oxygen. Carbon is used because the strength of a carbon-oxygen bond is greater than that of the iron-oxygen bond at high temperatures. Thus, the iron ore must be powdered and mixed with coke , to be burnt in the smelting process. Carbon monoxide is the primary ingredient of chemically stripping oxygen from iron. Thus,

9676-889: The iron is thought to have originated in dying stars that are large enough to explode as supernovae . The Earth's core is thought to consist mainly of iron, but this is inaccessible from the surface. Some iron meteorites are thought to have originated from asteroids 1,000 km (620 mi) in diameter or larger. Banded iron formations (BIFs) are sedimentary rocks containing more than 15% iron composed predominantly of thinly-bedded iron minerals and silica (as quartz ). Banded iron formations occur exclusively in Precambrian rocks, and are commonly weakly-to-intensely metamorphosed . Banded iron formations may contain iron in carbonates ( siderite or ankerite ) or silicates ( minnesotaite , greenalite , or grunerite ), but in those mined as iron ores, oxides ( magnetite or hematite ) are

9794-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

9912-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

10030-423: The magnetite concentrate. The size and strip ratio of most magnetite resources is irrelevant, as a banded iron formation can be hundreds of meters thick, extend hundreds of kilometers along strike , and can easily come to more than three billion or more tonnes of contained ore. The typical grade of iron at which a magnetite-bearing banded iron formation becomes economic is roughly 25% iron, which can generally yield

10148-476: The magnetite-bearing BIF or other rocks which form its main source, or protolith rock, but are considerably cheaper to mine and process as they require less beneficiation due to the higher iron content. However, DSO ores can contain significantly higher concentrations of penalty elements, typically being higher in phosphorus, water content (especially pisolite sedimentary accumulations), and aluminium ( clays within pisolites). Export-grade DSO ores are generally in

10266-399: The main iron ore producers ( BHP Billiton , Rio Tinto , and Vale S.A. ) and Japanese importers. In 2006, Chinese company Baosteel began handling negotiations for the importer side. The Chinese government replaced Baosteel with China Iron and Steel Association as lead negotiator in 2009. Traditionally, the first deal reached between these the major producers and the major importers sets

10384-488: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

10502-531: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

10620-410: The mine tailings contain an average of approximately 11% iron, there would be approximately 1.41 million tons of iron wasted annually. These tailings are also high in other useful metals such as copper , nickel , and cobalt , and they can be used for road-building materials like pavement and filler and building materials such as cement, low-grade glass, and wall materials. While tailings are

10738-504: The past as high-grade iron ore deposits requiring little beneficiation . There are several granite-associated deposits of this nature in Malaysia and Indonesia . Other sources of magnetite iron ore include metamorphic accumulations of massive magnetite ore such as at Savage River , Tasmania , formed by shearing of ophiolite ultramafics . Another, minor, source of iron ores are magmatic accumulations in layered intrusions which contain

10856-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

10974-473: The principal Indian producers of iron ore. World consumption of iron ore grows 10% per year on average with the main consumers being China, Japan, Korea, the United States, and the European Union. China is currently the largest consumer of iron ore, which translates to be the world's largest steel producing country. It is also the largest importer, buying 52% of the seaborne trade in iron ore in 2004. China

11092-418: The principal iron mineral. Banded iron formations are known as taconite within North America. The mining involves moving tremendous amounts of ore and waste. The waste comes in two forms: non-ore bedrock in the mine ( overburden or interburden locally known as mullock), and unwanted minerals, which are an intrinsic part of the ore rock itself ( gangue ). The mullock is mined and piled in waste dumps , and

11210-429: The quartz is left behind when the resultant powder is passed under a magnetic separator. Generally, most magnetite banded iron formation deposits must be ground to between 32 and 45 μm (0.0013 and 0.0018 in) in order to produce a low-silica magnetite concentrate. Magnetite concentrate grades are generally in excess of 70% iron by weight and usually are low in phosphorus, aluminium, titanium, and silica and demand

11328-595: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

11446-401: The reduced demand for steel. It also sold Skyline Steel and Astralloy to a rival, Nucor , for $ 605 million. On 26 January 2011, the stainless steel division split off as a new company, Aperam . As of 2012, due to overcapacity and reduced demand in Europe, it had idled 9 of 25 blast furnaces; in October 2012 it permanently shut down two blast furnaces at Florange , France. On 31 October 2012,

11564-769: The remainder split between South America and the Middle East and Africa. ArcelorMittal is also Luxembourg 's largest private employer. At the beginning of 2014, it employed 4,600 employees in the Grand Duchy. By 2020 the company had over 18,000 employees in North and South America. The head office of ArcelorMittal is in Luxembourg City . The building was the head office of Arbed before that company merged with Aceralia and Usinor . Operated by ArcelorMittal: Joint ventures: ArcelorMittal reported Total CO2e emissions (direct + indirect) for 31 December 2020 at 150.8 Tg ( teragram ) (-31,100 /-17.1% y-o-y). The decline accelerated compared to

11682-407: The rock must be comminuted to enable efficient magnetic separation to provide a high-purity magnetite concentrate. This determines the energy inputs required to run a milling operation. Mining of banded iron formations involves coarse crushing and screening, followed by rough crushing and fine grinding to comminute the ore to the point where the crystallized magnetite and quartz are fine enough that

11800-446: The seaborne trade, with 72% of the market. BHP, Rio and Vale control 66% of this market between them. In Australia , iron ore is won from three main sources: pisolite " channel iron deposit " ore derived by mechanical erosion of primary banded-iron formations and accumulated in alluvial channels such as at Pannawonica, Western Australia ; and the dominant metasomatically altered banded iron formation -related ores such as at Newman ,

11918-482: The settlement, also agreed to invest R4.64 billion in capital over five years. According to the findings, the firm had been part of a 17-member-steel group nicknamed "Club Zürich", that later became known as "Club Europe". Between January 1984 and September 2002, the companies fixed the market, prices, and exchanged confidential corporate information. In 2015, the company had a net loss of $ 7.9 billion. Between February 2015 and February 2016, share value dropped 60%, making

12036-459: The seventh largest global center of iron ore production, behind Australia, Brazil, China, India, Russia, and South Africa. Producers of iron ore in Ukraine include Ferrexpo , Metinvest , and ArcelorMittal Kryvyi Rih . In 2014, mines in the United States produced 57,500,000 t (56,600,000 long tons; 63,400,000 short tons) of iron ore with an estimated value of $ 5.1 billion. Iron mining in

12154-451: The seventh-largest global center of iron ore production, behind Australia, Brazil, China, Russia, South Africa, and Ukraine. India's iron ore production in 2023 was 285,000,000 metric tonnes and was the fourth largest producer in the world. According to the U.S. Geological Survey's 2021 Report on iron ore, Ukraine is estimated to have produced 62,000,000 t (61,000,000 long tons; 68,000,000 short tons) of iron ore in 2020, placing it as

12272-495: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

12390-401: The table aside. The major constraint to economics for iron ore deposits is not necessarily the grade or size of the deposits, because it is not particularly hard to geologically prove enough tonnage of the rocks exist. The main constraint is the position of the iron ore relative to market, the cost of rail infrastructure to get it to market, and the energy cost required to do so. Mining iron ore

12508-589: The two mines shut down. There have also been iron ore mines in Utah and Alabama ; however, the last iron ore mine in Utah shut down in 2014 and the last iron ore mine in Alabama shut down in 1975. Iron ores consist of oxygen and iron atoms bonded together into molecules. To convert it to metallic iron, it must be smelted or sent through a direct reduction process to remove the oxygen. Oxygen-iron bonds are strong, and to remove

12626-484: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

12744-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

12862-487: The world's biggest corporations. In February 2017 ArcelorMittal announced its first annual profits in five years. In February 2017, ArcelorMittal and Votorantim announced plans to combine their long steel operations in Brazil . Under the deal, Votorantim Siderurgia became a subsidiary of ArcelorMittal Brasil. In late May 2017, ArcelorMittal and the Steel Authority of India Ltd (SAIL) agreed on preliminary terms to form

12980-404: The world's largest corporations. It employs around 154,000 people and its market capital is $ 20 billion. The total value of company assets is estimated to be around $ 94 billion. ArcelorMittal was formed from the acquisition of Arcelor by Mittal Steel; Mittal Steel was in turn formed from the merger of ISPAT International and LNM Holdings. The company traces its history back to 1976. ArcelorMittal

13098-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

13216-442: Was created by the takeover of Western European steel maker Arcelor (Spain, France, and Luxembourg) by Indian -owned multinational steel maker Mittal Steel in 2006, at a cost of €40.37 per share, approximately $ 33 billion total. Mittal Steel launched a hostile takeover bid, which replaced a previously planned merger between Arcelor and Severstal that had lacked sufficient shareholder approval. The resulting merged business

13334-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

13452-566: Was formed. In July 2017 the company reported a 19.3 per cent year-on-year rise in its earnings for the year's second quarter. The amount was lower than predicted by analysts, with the company citing the volatility in market prices. Also, in July 2017, the European Court of Justice ruled against ArcelorMittal in its lawsuit against how the EU allocates free carbon permits. In January 2018, black snow fell in

13570-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

13688-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

13806-485: Was named ArcelorMittal and was headquartered in Luxembourg City . The resulting firm produced approximately 10% of the world's steel, and was by far the world's largest steel company. Total revenues in 2007 were $ 105 billion. By February 2008, the company had 320,000 employees in 60 countries. In October 2008, the market capitalisation of ArcelorMittal was over $ 30 billion, after peaking at $ 32.5 billion in September 2008. At

13924-503: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

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