Tata Steel Faces a Dutch Criminal Probe Over Pollutants

(Bloomberg) -- Tata Steel Ltd. will face a criminal probe in the Netherlands after the Dutch public health agency found higher concentrations of metals and carcinogens around its IJmuiden factory than the company's own figures.

The Public Prosecution Service on Wednesday said it is investigating Tata and Harsco Metals Holland BV over whether they intentionally and unlawfully introduced hazardous substances into the soil, air or surface water. That would pose a risk to public health and executives' roles at the companies will be part of the probe, it said.

The case could be closely followed by the wider European steel industry, as it may potentially draw attention to more operations. Traditional steelmaking uses large amounts of coal -- the dirtiest fossil fuel -- and chemicals, leading to almost unavoidable pollution of surrounding areas.

The probe could also increase the impetus to convert sites to greener steelmaking. The sector accounts for about 7% of carbon emissions globally and is difficult to decarbonize. Governments in Europe have pledged public money to help companies clean up their plants due to the scale of the investments required.

Tata said it will cooperate with the prosecution service and is looking forward to the results of the investigation. Harsco didn't immediately respond to a request for comment.

In September, Tata announced plans to convert the IJmuiden steelworks to run on hydrogen. So far, it has insisted on government support to help share the financial burden.

Read More: How Steel Could Become Green, and What It Would Take: QuickTake

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