ArcelorMittal South Africa 2007 Sustainability Report Page 32 As a corporate citizen concerned about the welfare and sustainability of the environment, ArcelorMittal South Africa is committed to manage the impact of its operations on the natural world. Managing our environmental impact The company recognises that the steelmaking process and its waste and by-products have many potentially harmful effects, which include:  the emission of CO2 gases as a result of the considerable carbon used to manufacture steel;  particulate and other air emissions such as SO2;  pollution due to the generation of slag and other waste;  water consumption, pollution and wastage; and  energy consumption. Of these five issues, the company regards the issue of particulate and other air emissions as being the most important, and many of our large investment projects are directed towards improving our performance in this area. This section of the report deals with the issues identified above, as well as with the current pressing issue relating to the company’s management of its environmental impact at the Vaal waste disposal site and other sites. Policy and commitments Our Safety, Health and Environment policy provides the framework for setting objectives and targets within the group. This policy is given the highest level of consideration, having been established by the executive committee, chaired by the Chief Executive Officer and approved by the SHE Committee of the board. The following long-term objectives were formulated during 2006, and are updated periodically as technologies develop:  Improve energy efficiency by 15% by 2014, with the year 2000 being the baseline; •  Reduce  CO2 emissions per tonne of crude steel by 7% by 2014, with the year 2005 being the baseline;  Achieve and maintain ambient PM10 dust levels of 40µg/m3 (annual average), measured along the fence line, by 2012;  Reduce water abstraction per tonne of crude steel produced by 40% by 2010, with the year 2005 as the baseline; and  Improve our material efficiency rate by 20% by 2011, from current levels. Disposal at the Vaal Waste Disposal site – our most pressing environmental issue In May 2007, the Environmental Management Inspectorate (EMI) of the Department of Environmental Affairs and Tourism (DEAT), otherwise known as the ‘Green Scorpions’, conducted an inspection at ArcelorMittal South Africa’s Vereeniging Works as part of Operation Ferro, a national environmental compliance campaign targeting the iron, steel and ferro-alloy industries. The audit resulted in the closure of the Vaal disposal site. The waste in question comprises slag, spent refractories and building rubble. Arc furnace dust which contains cadmium, chrome and lead was previously disposed of at this site, but ArcelorMittal South Africa decided not to continue with this practice in February 2007 due to the potential adverse impacts on the environment. ArcelorMittal South Africa’s immediate compliance action All waste that used to be destined for this disposal site is currently being disposed of at alternative disposal sites that are fully compliant with legal requirements. A magnetite stockpile was found when ArcelorMittal South Africa purchased USKO steelworks in 1991. The stockpile was leaching contaminants into the groundwater and ArcelorMittal South Africa is in progress of removing this material from the disposal site with a planned completion date of December