Lloyd’s Register and ArcelorMittal to develop global iron ore and steel logistics operating model

Before a ship, drilling platform, or wind farm is built, “iron” undergoes a complex logistical process. Before iron ore is transformed into steel and reaches a shipyard or a port quay, it undergoes complex stages of land and sea transportation, production logistics, and a delivery system to the final customer. ArcelorMittal and Lloyd’s Register will build a model logistics system ensuring sustainable management.

ArcelorMittal has signed an agreement with Lloyd’s Register to streamline the global dry bulk terminal operating system. The system will ensure a strategic, transparent, and scalable operating model that enhances safety, reliability, governance, ESG efficiency, resilience, and long-term value across the global dry bulk terminal network, ArcelorMittal announced.

The collaboration between the two companies aims to “create a practical, verifiable, and scalable operating system that provides ArcelorMittal with a repeatable approach to high-standard terminal operations worldwide, while enabling digital portfolio control and performance visibility,” explained Daniel Campos, Global Lead of Ports Advisory, Lloyd’s Register.

ArcelorMittal produces steel in 14 countries, including 34 integrated and small-scale steel mills. As of December 31, 2025, ArcelorMittal employed over 125,500 people. ArcelorMittal produces flat products, including sheet and plate, and long products, including bars, wire rods, and structural shapes.

ArcelorMittal’s steel mills also produce tubes and pipes for various applications. ArcelorMittal products are sold locally and exported to 126 countries. They are used in the automotive, household appliance, and Engineering, construction, and machinery. In 2025, approximately 40% of crude steel will be produced in the Americas, approximately 53% in Europe, and approximately 7% in other countries.

Ore mines and ports in the operational model

Lloyd’s Register (LR), in collaboration with ArcelorMittal, will develop a Global Operating Model that will provide a consistent standard for dry bulk terminal operations across the group’s port portfolio. This will create a unified operating base for the ArcelorMittal Global Ports network, which is located on different continents.

ArcelorMittal’s mining operations focus on the extraction of iron ore in lumps, fines, concentrates, pellets, and sinter feedstock. ArcelorMittal has its own mines in North America, South America, Africa, and Europe. Its own mines are integrated with the company’s global steel production facilities.

The goal is also to ensure a stable and fully integrated Controllable logistics from raw material acquisition to ore delivery to the smelter. Ore sourced from different countries is transported and handled in ports with different regulatory environments and operating cultures.

ArcelorMittal’s production facilities in Europe. Source: ArcelorMittal Factbook 2025

Stability and Security

The goal of the global operating system will be to “reduce volatility, enhance safety and reliability, improve portfolio-level visibility, strengthen ESG practices, biodiversity, and sustainability, and support the disciplined implementation of digital solutions,” according to ArcelorMittal management.

“Early engagement with ArcelorMittal will allow both organizations to jointly develop a strategic operating model that supports safer execution and ESG-compliant management,” said George Georgandis CEng MBA, Senior Manager of Business Development at Lloyd’s Register.

ArcelorMittal’s products are sold locally and exported to 126 countries. They are used in the automotive, household appliances, engineering, construction, and machinery industries. In 2025, approximately 40% of crude steel was produced in the Americas, approximately 53% in Europe, and approximately 7% elsewhere.

Product Sales in Europe. Source: ArcelorMittal Factbook 2025

Steel Resilience

In its Q1 2026 results, ArcelorMittal emphasized that “Group results continue to demonstrate resilience, with Q1 2026 EBITDA of $131/tonne increasing by $15/tonne year-on-year.” Management believes these are tangible benefits of a strategic investment program, ongoing asset optimization, and diversified market exposure. As a result, net profit in Q1 2026 reached $0.6 billion, with basic earnings per share at $0.76/share.

In its 2025 annual report, ArcelorMittal reported that EBITDA for the full year 2025 exceeded $6.5 billion ($6.541 billion, to be exact). According to management, this indicates the company’s stable condition and growth of approximately 10.6% compared to the previous year. This result was achieved even though ArcelorMittal recorded global crude steel production of 55.56 million tons in 2025, approximately 4% less than 57.9 million tons in 2024. Steel deliveries in 2025, amounting to nearly 54 million tons, generated sales revenues of $61,352 million.

Results in 2026 began to improve. Record iron ore production and deliveries were achieved in Liberia. There was a “return to normal operating levels in North America,” management reported in its Q1 2026 results. “Over the past 12 months, the Company generated $2.0 billion in investable cash flow.” During the same period, the Company invested USD 1.5 billion in strategic capital expenditures (CAPEX) and allocated USD 0.2 billion to mergers and acquisitions.

ArcelorMittal Iron Ore Production. Source: ArcelorMittal 2025 Annual Report

Strategic Projects and EBITDA

In April of this year, ArcelorMittal announced that it is implementing strategic projects that are ensuring good dynamics and supporting EBITDA and ROCE growth. Investment activities continued in Q1 2026. Of the USD 1.3 billion, USD 0.2 billion was allocated to the development of mineral deposits in Liberia.

“Capital expenditure forecasts for 2026 remain unchanged at USD 4.5-5.0 billion,” the company’s management stated. Investments of USD 1.7-2.0 billion will be allocated to high-return projects. It was determined that “the additional impact from strategic investment projects (including completed mergers and acquisitions) on EBITDA currently amounts to USD 1.8 billion.” Profits will be enhanced by the benefits of the launch of the “Dunkirk Arc Furnace” and previous investments in the Sestao and Gijón Arc Furnaces.

Investment activity and mergers and acquisitions require efficient management of all production logistics. Therefore, LR will develop a “practical framework for terminals with varying asset ages, operational maturity, and local practices.”

Ore, Steel, and Management in the Manual

The Global Operating Model will integrate a comprehensive set of elements, including a “controlled Operations Manual, a structured SOP library, checklist-based controls, and self-audit and quality assurance tools focused on implementing change, gathering evidence, measurable compliance, and continuous improvement.”

The documentation, developed by experts from both companies, will also address issues related to environmental protection, biodiversity, emissions, and resource efficiency awareness. Waste and wastewater management will also be under scrutiny. Governance will encompass corporate operations, including “interactions with the community and stakeholders.” The operating model is designed to ensure transparency in governance, quality assurance, and future reporting.

Ore mine production by region. Source: ArcelorMittal Factbook 2025

“Geographic diversity, varying regulatory environments, and the maturity levels of the company’s terminals make consistency and disciplined execution essential [in ArcelorMittal’s operations – MG],” said Deepak Sachdeva, Head of Global Ports, ArcelorMittal, emphasizing that “the model will strengthen corporate governance, controllability, and security while integrating ESG requirements and information-based management processes.”

The model aims to “move ArcelorMittal’s portfolio beyond site-specific standardization toward a group-level performance, management, and control system.” This includes comprehensive KPI definition, consistent reporting, benchmarking across terminals, a clear development logic, and phased improvement planning.