Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 401

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 401
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 overburden and ore mining, rather than as an integrated unit. • If expenditures for additional infrastructure to support the second and subsequent pits are relatively large. • If the pits extract ore from separate and distinct ore bodies, rather than from a single ore body. The relative importance of each factor is considered by local management to determine whether the stripping costs should be attributed to the individual pit or to the combined output from several pits. Developmental stripping costs contribute to the future economic benefits of mining operations when the production begins and so are capitalized as tangible assets (construction in progress), whereas production stripping is a part of on-going activities and commences when the production stage of mining operations begins and continues throughout the life of a mine. Capitalization of developmental stripping costs ends when the commercial production of the minerals commences. Production stripping costs are incurred to extract the ore in the form of inventories and/or to improve access to an additional component of an ore body or deeper levels of material. Production stripping costs are accounted for as inventories to the extent the benefit from production stripping activity is realized in the form of inventories. Production stripping costs are recognized as a non-current asset (“stripping activity assets”) to the extent it is probable that future economic benefit in terms of improved access to ore will flow to the Company, the components of the ore body for which access has been improved can be identified and the costs relating to the stripping activity associated with that component can be measured reliably. All stripping costs assets (either stripping activity assets or capitalized developmental stripping costs) are presented within a specific “mining assets” class of property, plant and equipment and then depreciated on a units-of-production basis. Exploration and evaluation expenditure Exploration and evaluation activities involve the search for iron ore and coal resources, the determination of technical feasibility and the assessment of commercial viability of an identified resource. Exploration and evaluation activities include: • researching and analyzing historical exploration data;

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| Consolidated financial statements                          |
| (millions of U.S. dollar, except share and per share data) |

• conducting topographical, geological, geochemical and geophysical studies; • carrying out exploratory drilling, trenching and sampling activities; • drilling, trenching and sampling activities to determine the quantity and grade of the deposit; • examining and testing extraction methods and metallurgical or treatment processes; and • detailed economic feasibility evaluations to determine whether development of the reserves is commercially justified and to plan methods for mine development. Exploration and evaluation expenditure is charged to the consolidated statements of operations as incurred except in the following circumstances