September 2008

U.S. Water News Online

DUNKERQUE, France — A French court has opened a judicial inquiry into allegations that steel giant Arcelor and three other companies trafficked in toxic waste, a prosecutor said.

Jean-Philippe Joubert, prosecutor in the northern city of Dunkerque, said the inquiry began in July. His statement came after a local paper published an investigative report on the alleged waste trafficking.

Joubert said no one has yet been charged in the case, which is focusing on actions from 2002 to 2005. In addition to Arcelor, Sonolub, a company specializing in treating toxic waste, a Dunkerque-based hydrocarbon warehouse and a maritime transport company are all named in the inquiry.

The La Voix du Nord newspaper accused the four companies of colluding with a customs official to illegally dispose of naphthalene fuel, a dangerous substance that results when steel-working facilities are cleaned.

According to the newspaper story, Arcelor said it was delivering the fuel to Sonolub to be treated when it was actually storing and then reselling it in Belgium to be used as fuel in supertankers.

It also alleged that Arcelor submitted false documents in order to be reimbursed for part of a French tax on petroleum derivatives.

Arcelor said in a statement its factory in Dunkerque "has always scrupulously respected" rules concerning the disposal of naphthalene fuel.

Arcelor SA is now part of ArcelorMittal following a bitter 2006 takeover battle by Mittal Steel Co.

Luxembourg-based ArcelorMittal, the world's largest steelmaker, announced it will cut costs by $4 billion over the next five years through a mix of smarter investments and job cuts. The company employs more than 320,000 people in more than 60 countries.

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