Final approval for ArcelorMittal’s decarbonization plan in Asturias remains in a holding pattern, touched by last‑minute fringes acknowledged by Ministry of Industry sources on Tuesday. Earlier, the Principality’s Vice‑President Juan Cofiño had pledged that approval would arrive soon, yet today the path forward is not crystal clear, and uncertainty persists about whether the blast furnace will reopen. The facility, which was set to be refurbished rather than demolished last week, faces a choice between repair and permanent closure well before the end of its expected lifespan.
The Mittal family, along with Prime Minister Pedro Sánchez, announced in July 2021 a 1,000‑million euro plan to replace one of the two blast furnaces by 2025. Gijón recently hosted a demonstration around a direct iron ore reduction plant using a hybrid electric arc furnace powered by green hydrogen and renewables. After more than a year of negotiations and regulatory steps, the European Commission approved 460 million dollars in aid for the decarbonization scheme, but the Spanish Government still needs to grant it through a royal decree that remains pending. The issue is described as a last‑minute marginal matter by Ministry of Industry sources.
During the latest talks between ArcelorMittal management and worker representatives, the unions pressed for swift progress on the decarbonization plan to reduce ongoing uncertainties tied to ERTE measures and the blast furnace fire itself. Management has signaled a stalemate: the government has not approved European aid, while the company has not committed to the necessary investment. Unlocking the project remains contingent on a royal decree and thus remains unconfirmed for the moment.
On Monday, the Council of Ministers was expected to weigh the aid at its upcoming session, though insiders noted that the issue could be postponed. Regardless, officials stressed that the blast furnace incident should not jeopardize the investment in the broader regional program. The timing of any decision continues to be a moving target as regional authorities balance industrial strategy with energy transition goals.
In Asturias, ArcelorMittal has floated significant changes in working conditions to streamline shift changes and working hours, adjust consolidation guarantees for higher job classifications, and redefine obligations for staff operating on standard hours. The company proposed securing financial guarantees to support workers returning to their home regimes, while offering enhancements such as a larger holiday allowance, a higher salary for new hires, and expanded overtime benefits. These changes aim to stabilize operations and align worker incentives with a long‑term decarbonization agenda, though negotiations are ongoing and subject to regulatory approval and workforce consensus.
Inspecting the furnace interior will take days longer
Technical teams are expected to spend several days examining the interior of the ArcelorMittal blast furnace following last week’s explosion and fire. Although pig iron and slag removal was completed recently, technicians require access to finish a thorough clean‑up. The purpose of the in‑situ inspection is to determine the exact extent of damage to the crucible, a crucial component protected by refractory materials and other plant systems. The findings, to be shared with ArcelorMittal’s management and its investment committee, will influence whether the furnace will be repaired or permanently shut down. Early reports describe a serious malfunction that will involve a costly repair, though the final assessment depends on the comprehensive data collected on site. In regional and plant‑level discussions, restoration is being considered as a viable path, reflecting precedents where similar malfunctions were repaired in other group facilities. The team involved includes ArcelorMittal experts who have faced comparable situations in different regions, including the United States. However, the Gijón furnace faces a unique context: regardless of the ultimate damage level, the plant is nearing the end of its operating life, with estimates suggesting possible continued operation into 2025, expanding beyond an earlier forecast of 2024. One of Gijón’s two facilities would represent a sizable reduction in overall activity. Meanwhile, negotiations could trigger a force majeure ERTE in four regions, as the group prepares for the next phase of industrial disruption and labor adjustments. (Source: company updates and regional briefings, attribution: ArcelorMittal corporate communications and regional industry briefings)