ArcelorMittal South Africa 2007 Sustainability Report Page 2 We are committed to our vision to being a key player in the steel market in sub-Saharan Africa, while engaging with every stakeholder as a responsible corporate citizen Foreword by Dr Khotso Mokhele Chairman of the board of directors Our primary duty to South Africa Our South African economy is at a critical juncture on its road to successful transformation from a dual economy dividing rich from poor to an integrated nation that offers equal opportunities for all. While this report deals with our impacts on society and the environment for 2007, we need also to look forward. The year 2008 began with instability on world markets following the stress placed on financial institutions by over-extension in the US sub-prime lending market. There is a worldwide energy crisis that has hit not only South Africa, but other countries as well, such as caused by unseasonal weather in China this past winter. And the potential impacts of global warming have brought home to every corner of the supply chain, from extractor to consumer, the need to reduce our emissions of greenhouse gases. In this uncertain environment, our country needs every industry component to pull its weight to steady the ship. Steel is a fundamental input to our economy. It is the core material in the structures that carry our power and the cladding that protects the homes of so many of our people. It is our primary duty to continue growing our production for the benefit of all the downstream industries that depend on us. And it is a challenge that we intend to rise to as we continue with our capital expansion programme going forward. Strengthening the leadership team Recently, we announced the appointment of Nku Nyembezi- Heita, formerly Chief Officer: Mergers and Acquisitions at the Vodacom Group, as Chief Executive Officer and member of the Board of ArcelorMittal South Africa with effect from 1 March 2008. Nku Nyembezi-Heita has succeeded Rick Reato, who has been appointed as Vice President: Operational Excellence in the ArcelorMittal Group based in London, where he will focus on the group’s steel businesses in South Africa, Ukraine and Kazakhstan. An agreement has been reached with Rick Reato to avail himself to assist with the transition to the new leadership. The departure of Rick Reato has provided an opportunity for the board to restructure the management of the company to maximise success in achieving the very robust plan to increase output from 7 million tonnes of liquid steel per annum to 9,5 million tonnes by 2011. In this regard, the board was successful in getting the ArcelorMittal Group to release Luc Bonte, formerly the CEO of ArcelorMittal Gent, a business unit of ArcelorMittal based in Belgium, to join the company in the position of President and member of the board to take responsibility for operational management of the business. Luc Bonte reports directly to the CEO, and assumed his duties on 1 March 2008. This strengthened leadership team not only has the responsibility to increase the company’s output whilst improving production efficiencies, but also to improve our performance in the areas of social, ethical and environmental impact. Transformation, for example, is one of our most important issues, and I, personally, chair the company’s transformation committee. Our responses to this and other material issues facing the company are dealt with in detail in this report. We are deeply engaged with our key stakeholders and remain committed to manage these challenges to the benefit of all parties affected by our dealings and our operations. Khotso Mokhele Chairman of the board of directors