Sunday, 13 Feb 2011
Bloomberg reported that ArcelorMittal South Africa Limited said that delays in supply caused by the shutdown of its Newcastle blast furnace will be resolved within the next two months.
ArcelorMittal SA said that the furnace, which developed cold conditions in early December 2010, was restarted in January 2011 and is currently operating at capacity.
It added that "We are in the process of working closely with customers to address the urgent supply issues and we are hopeful of being back to normal supply levels for domestic demand in the next two months."
ArcelorMittal South Africa posted a fourth quarter loss excluding one time items of ZAR 495 million as compared with a profit of ZAR 469 million a year earlier. The company returned to profit over the full year.
(Sourced:bloomberg.net)
Showing posts with label Arcelor Mittal South Africa. Show all posts
Showing posts with label Arcelor Mittal South Africa. Show all posts
Sunday, February 13, 2011
Sourth Africa faces delay threat to projects over shortage of steel rebar
Sunday, 13 Feb 2011
It is reported that large building and construction projects in South Africa could grind to a halt within weeks because of a shortage of rebar. The shortage was caused by a breakdown last month of ArcelorMittal’s main furnace in Newcastle in KwaZulu Natal.
The South African Reinforced Concrete Engineers Association said that the breakdown meant there would not be any rebar available this month, possibly halting building and construction projects in SA, and resulting in delays and additional costs. This comes at a time when the construction industry is reeling from the effects of the global economic recession and the spending hangover after last year’s Soccer World Cup. While there was huge state investment in fixed capital last year, the government has been slow since then to issue new tenders and tardy in paying for work done. The private sector is complaining bitterly.
The association said that the shortage had been made worse by the closure last year of the unprofitable reinforcing steel rolling mill, Cape Town Iron & Steel Works, which had been a large supplier of the steel.
Mr Rod Mountford director of the association said in a statement that "Members of the association are reporting serious shortages of rebar and mesh rod, which has been totally unforeseen and beyond their control."
Mr Mountford said that "The imported product is more expensive than locally sourced reinforcement. Individual importers of rebar will also have to ensure that the quality of the steel complies with South African standards and specifications. Steel mills have already been notified there are price increases due this month and in March 2011."
SA's two remaining suppliers Scaw Metals and the Davsteel division of Cape Gate, were unable to provide construction firms with their required volumes, leaving a two to three month lead time for imported rebar. (sourced:businessday.co.za)
It is reported that large building and construction projects in South Africa could grind to a halt within weeks because of a shortage of rebar. The shortage was caused by a breakdown last month of ArcelorMittal’s main furnace in Newcastle in KwaZulu Natal.
The South African Reinforced Concrete Engineers Association said that the breakdown meant there would not be any rebar available this month, possibly halting building and construction projects in SA, and resulting in delays and additional costs. This comes at a time when the construction industry is reeling from the effects of the global economic recession and the spending hangover after last year’s Soccer World Cup. While there was huge state investment in fixed capital last year, the government has been slow since then to issue new tenders and tardy in paying for work done. The private sector is complaining bitterly.
The association said that the shortage had been made worse by the closure last year of the unprofitable reinforcing steel rolling mill, Cape Town Iron & Steel Works, which had been a large supplier of the steel.
Mr Rod Mountford director of the association said in a statement that "Members of the association are reporting serious shortages of rebar and mesh rod, which has been totally unforeseen and beyond their control."
Mr Mountford said that "The imported product is more expensive than locally sourced reinforcement. Individual importers of rebar will also have to ensure that the quality of the steel complies with South African standards and specifications. Steel mills have already been notified there are price increases due this month and in March 2011."
SA's two remaining suppliers Scaw Metals and the Davsteel division of Cape Gate, were unable to provide construction firms with their required volumes, leaving a two to three month lead time for imported rebar. (sourced:businessday.co.za)
Tuesday, February 8, 2011
ArcelorMittal SA back to profit, sees improvement
Tue Feb 8, 2011 7:57am GMT
JOHANNESBURG (Reuters) - ArcelorMittal South Africa, a unit of the world's biggest steelmaker, on Tuesday posted a return to full-year profit, lifted by stronger sales, and said it expects solid results ahead.
The company said diluted headline earnings per share for the year to end-December totalled 343 cents, compared with a loss of 104 cents a year earlier.
Headline earnings are the main gauge of profit in South Africa and strip out certain one-time items.
Revenue totalled 30.22 billion rand, up from 25.59 billion rand in the previous year.
The company said growing demand for steel and higher global prices would boost its earnings in the first quarter of 2011.
"A significant turnaround in earnings is anticipated for the first quarter 2011 compared to the loss for the last quarter of 2010," it said in a statement.
The company, however, said the earnings would be partially offset by rising prices of raw materials, mainly scrap.
The global steel sector has been caught in a margin squeeze since the middle of 2010, when raw material costs began steadily to increase, but steel prices dropped while the industry as a whole took a breather.
The company also said the arbitration proceedings relating to its stake in Kumba's Sishen mine were in progress and a hearing date was yet to be set.
ArcelorMittal South Africa has been at loggerheads with Kumba, a unit of Anglo American, over iron ore prices.
It is also attempting to buy little-known mining firm Imperial Crown Trading after that company won a prospecting right to a stake in Kumba's Sishen mine.
As part of that deal, ArcelorMittal South Africa has said it would transfer about a quarter of its shares to black investors, including ICT and an investment group led by the son of South African President Jacob Zuma.
The company said issues relating to the black empowerment transaction and acquisition of ICT were still in progress.
Shares in the steelmaker have gained nearly 8 percent so far this year, outperforming a 3.5 percent rise in the Johannesburg's blue-chip Top-40 index.
JOHANNESBURG (Reuters) - ArcelorMittal South Africa, a unit of the world's biggest steelmaker, on Tuesday posted a return to full-year profit, lifted by stronger sales, and said it expects solid results ahead.
The company said diluted headline earnings per share for the year to end-December totalled 343 cents, compared with a loss of 104 cents a year earlier.
Headline earnings are the main gauge of profit in South Africa and strip out certain one-time items.
Revenue totalled 30.22 billion rand, up from 25.59 billion rand in the previous year.
The company said growing demand for steel and higher global prices would boost its earnings in the first quarter of 2011.
"A significant turnaround in earnings is anticipated for the first quarter 2011 compared to the loss for the last quarter of 2010," it said in a statement.
The company, however, said the earnings would be partially offset by rising prices of raw materials, mainly scrap.
The global steel sector has been caught in a margin squeeze since the middle of 2010, when raw material costs began steadily to increase, but steel prices dropped while the industry as a whole took a breather.
The company also said the arbitration proceedings relating to its stake in Kumba's Sishen mine were in progress and a hearing date was yet to be set.
ArcelorMittal South Africa has been at loggerheads with Kumba, a unit of Anglo American, over iron ore prices.
It is also attempting to buy little-known mining firm Imperial Crown Trading after that company won a prospecting right to a stake in Kumba's Sishen mine.
As part of that deal, ArcelorMittal South Africa has said it would transfer about a quarter of its shares to black investors, including ICT and an investment group led by the son of South African President Jacob Zuma.
The company said issues relating to the black empowerment transaction and acquisition of ICT were still in progress.
Shares in the steelmaker have gained nearly 8 percent so far this year, outperforming a 3.5 percent rise in the Johannesburg's blue-chip Top-40 index.
Friday, January 28, 2011
S.Africa may ask for low-price iron ore deal: paper
Friday, 28 Jan 2011
JOHANNESBURG (Reuters) -South Africa may ask Kumba Iron Ore to enter into a preferential iron ore supply deal with politically-connected Imperial Crown Trading, Business Day reported on Friday, citing a senior government official.
Kumba lost a battle for mine rights over a stake in its Sishen mine that was previously held by ArcelorMittal's South African unit. The deal entitled the steelmaker to source ore from Kumba at a discount.
After ArcelorMittal failed to renew its rights, both Kumba and little-known ICT applied. The government granted ICT prospecting rights over the mine stake and rejected Kumba's application. The iron ore producer vowed to fight the government decision in court.
ICT has subsequently applied for a mining right.
"If this application is granted, the overwhelmingly likely result will be that (Kumba) and ICT would have to negotiate in good faith in order to procure an arrangement along the lines contained in the supply agreement," Sandile Nogxina, director general in the minerals department, was quoted as saying in court papers.
A preferential deal with ICT would pave the way for ArcelorMittal, which said last year it would buy ICT, to source discounted iron ore once more.
But it would raise further questions about the management of mining rights in South Africa.
Various disputes in 2010 tarnished the image of South Africa as a destination for international mining investment, despite it being the world's biggest platinum producer and number three gold producer.(sourced:af.reuters)
JOHANNESBURG (Reuters) -South Africa may ask Kumba Iron Ore to enter into a preferential iron ore supply deal with politically-connected Imperial Crown Trading, Business Day reported on Friday, citing a senior government official.
Kumba lost a battle for mine rights over a stake in its Sishen mine that was previously held by ArcelorMittal's South African unit. The deal entitled the steelmaker to source ore from Kumba at a discount.
After ArcelorMittal failed to renew its rights, both Kumba and little-known ICT applied. The government granted ICT prospecting rights over the mine stake and rejected Kumba's application. The iron ore producer vowed to fight the government decision in court.
ICT has subsequently applied for a mining right.
"If this application is granted, the overwhelmingly likely result will be that (Kumba) and ICT would have to negotiate in good faith in order to procure an arrangement along the lines contained in the supply agreement," Sandile Nogxina, director general in the minerals department, was quoted as saying in court papers.
A preferential deal with ICT would pave the way for ArcelorMittal, which said last year it would buy ICT, to source discounted iron ore once more.
But it would raise further questions about the management of mining rights in South Africa.
Various disputes in 2010 tarnished the image of South Africa as a destination for international mining investment, despite it being the world's biggest platinum producer and number three gold producer.(sourced:af.reuters)
Thursday, January 27, 2011
S.Africa says Kumba mine right bid "fraudulent"- paper
Thursday Jan 27, 2011
* Govt rejects Kumba's application for disputed mining right
* Govt says Kumba's application "irregular, misleading"
JOHANNESBURG Jan 27 (Reuters) - South Africa has rejected Kumba Iron Ore's bid for a disputed mining right because its application was "fraudulent" and "premature", Business Day reported on Thursday, quoting a letter sent to the company.
The iron ore producer, a unit of Anglo American , applied for the mining right over a 21.4 percent stake in its Sishen mine that was previously held by ArcelorMittal South Africa .
The 21.4 percent stake was the base of a preferential iron ore supply deal between the two companies which Kumba cancelled in February after ArcelorMittal failed to convert its right over the stake into new mining rights, as required by law.
The government subsequently awarded a prospecting right over that stake to Imperial Crown Trading, a little-known company with close ties to high-ranking government officials. Kumba has been contesting the award of the prospecting right in court.
The paper said the government dismissed Kumba's application partially because of the "irregular, misleading and fraudulent manner" in which it was submitted and because it lacked environmental management plans, as required by the minerals act.
According to the government, Kumba had submitted its application before ArcelorMittal's right had expired.
The iron ore producer was not immediately available to comment.
Various disputes over mining rights in 2010 tarnished the image of South Africa as a destination for international mining investment, despite it being the world's biggest platinum producer and number three gold producer.
(Reporting by Agnieszka Flak, Editing by Ed Cropley, sourced reuters)
* Govt rejects Kumba's application for disputed mining right
* Govt says Kumba's application "irregular, misleading"
JOHANNESBURG Jan 27 (Reuters) - South Africa has rejected Kumba Iron Ore's bid for a disputed mining right because its application was "fraudulent" and "premature", Business Day reported on Thursday, quoting a letter sent to the company.
The iron ore producer, a unit of Anglo American , applied for the mining right over a 21.4 percent stake in its Sishen mine that was previously held by ArcelorMittal South Africa .
The 21.4 percent stake was the base of a preferential iron ore supply deal between the two companies which Kumba cancelled in February after ArcelorMittal failed to convert its right over the stake into new mining rights, as required by law.
The government subsequently awarded a prospecting right over that stake to Imperial Crown Trading, a little-known company with close ties to high-ranking government officials. Kumba has been contesting the award of the prospecting right in court.
The paper said the government dismissed Kumba's application partially because of the "irregular, misleading and fraudulent manner" in which it was submitted and because it lacked environmental management plans, as required by the minerals act.
According to the government, Kumba had submitted its application before ArcelorMittal's right had expired.
The iron ore producer was not immediately available to comment.
Various disputes over mining rights in 2010 tarnished the image of South Africa as a destination for international mining investment, despite it being the world's biggest platinum producer and number three gold producer.
(Reporting by Agnieszka Flak, Editing by Ed Cropley, sourced reuters)
Tuesday, January 25, 2011
CoAL project ‘less controversial’
Coal of Africa lodge mining right application at its Makhado coking coal project.
ALLAN SECCOMBE Published: 25 Janurary, 2011
COAL of Africa (CoAL) has lodged a mining right application for its Makhado coking coal project, which could supply ArcelorMittal SA with a vital ingredient for making steel, CEO John Wallington said yesterday.
CoAL has run into headwinds from environmentalists at its Vele project on the edge of the Mapungubwe World Heritage Site, which could be part of a large transfrontier park with Zimbabwe and Botswana.
Mr Wallington said much more detailed work was being done at Makhado than at Vele, both of which are in Limpopo. While Makhado is near game reserves, it should not attract as much opposition as Vele has, Mr Wallington said.
The Department of Mineral Resources could take a year to process the mining right application. CoAL is also working with the Department of Environmental Affairs to avoid a repetition of problems at its Mooiplaats mine in Mpumalanga where it ran foul of overlapping regulations between the two departments.
CoAL has consulted interested and affected parties around its Makhado project, which is contiguous to coal properties it bought from Rio Tinto, Mr Wallington said.
"Once the application is accepted by the department, extensive economic, social and environmental impact studies will be prepared as part of the process in formulating an extensive environmental management programme," he said.
Floods in Australia’s coal state, Queensland, and disruptions to the world’s leading supplier of coal would make the diversity offered by CoAL’s Makhado project a boon for shareholders and the province, he said. Source: www.businessday.co.za
Saturday, January 15, 2011
Anglo's American's Kumba Iron Ore to Object to ICT Mine Right Application
By Carli Lourens - Jan 14, 2011
Kumba Iron Ore Ltd., a unit of Anglo American Plc, said it will object to South Africa’s acceptance of an application by Imperial Crown Trading Ltd. for a 21.4 percent mining right at its Sishen mine in South Africa.
The application was submitted on Dec. 9 and accepted on Dec. 23, Pretoria-based Kumba said in a statement today. The acceptance means the application will now be evaluated before a decision is made about granting the mining right, Kumba said.
The company, the world’s fourth-largest supplier of seaborne iron ore, is already challenging the government’s earlier award of a partial prospecting right over the mine to Imperial in the North Gauteng High Court in Pretoria. Imperial’s owners include Jagdish Parekh, who is investing in ArcelorMittal South Africa Ltd. together with South African President Jacob Zuma’s son, Duduzane.
“This means that this whole issue that we had hoped would have been put to bed already is just carrying on,” Ron Klipin, an analyst at SA Stockbrokers, said by phone from Johannesburg.
Kumba’s Sishen Iron Ore Co. “does not believe that it was lawful for the Department of Mineral Resources to have accepted ICT’s application, pending the High Court Review initiated in May 2010, over the prospecting right awarded to ICT,” it said.
Appeal the Decision
SIOC, part-owned by Exxaro Resources Ltd., is in the process of objecting to the application and will launch an appeal against the decision, Kumba said.
ArcelorMittal South Africa, controlled by the world’s largest steelmaker, previously held the partial right over Sishen mine, facilitating iron ore supplies at below-market prices. Iron ore is a steelmaking ingredient.
Kumba Chairman Lazarus Zim resigned last month to avoid a conflict of interest as he sets up a steel company to rival ArcelorMittal South Africa. Zim had earlier excluded himself from board decisions over Kumba’s Sishen deposit because of his relationship with ICT’s Parekh. Parekh’s mobile phone was switched off when Bloomberg News called seeking comment.
Zingaphi Jakuja, spokeswoman for the Department of Mineral Resources, said she couldn’t immediately comment when Bloomberg News contacted her on her mobile phone.
Kumba was unchanged at 450 rand at the 5 p.m. close in Johannesburg, giving it a market value of 145 billion rand ($21 billion).
ArcelorMittal, based in Luxembourg, is the world’s largest steelmaker.
Source: Bloomberg
Kumba Iron Ore Ltd., a unit of Anglo American Plc, said it will object to South Africa’s acceptance of an application by Imperial Crown Trading Ltd. for a 21.4 percent mining right at its Sishen mine in South Africa.
The application was submitted on Dec. 9 and accepted on Dec. 23, Pretoria-based Kumba said in a statement today. The acceptance means the application will now be evaluated before a decision is made about granting the mining right, Kumba said.
The company, the world’s fourth-largest supplier of seaborne iron ore, is already challenging the government’s earlier award of a partial prospecting right over the mine to Imperial in the North Gauteng High Court in Pretoria. Imperial’s owners include Jagdish Parekh, who is investing in ArcelorMittal South Africa Ltd. together with South African President Jacob Zuma’s son, Duduzane.
“This means that this whole issue that we had hoped would have been put to bed already is just carrying on,” Ron Klipin, an analyst at SA Stockbrokers, said by phone from Johannesburg.
Kumba’s Sishen Iron Ore Co. “does not believe that it was lawful for the Department of Mineral Resources to have accepted ICT’s application, pending the High Court Review initiated in May 2010, over the prospecting right awarded to ICT,” it said.
Appeal the Decision
SIOC, part-owned by Exxaro Resources Ltd., is in the process of objecting to the application and will launch an appeal against the decision, Kumba said.
ArcelorMittal South Africa, controlled by the world’s largest steelmaker, previously held the partial right over Sishen mine, facilitating iron ore supplies at below-market prices. Iron ore is a steelmaking ingredient.
Kumba Chairman Lazarus Zim resigned last month to avoid a conflict of interest as he sets up a steel company to rival ArcelorMittal South Africa. Zim had earlier excluded himself from board decisions over Kumba’s Sishen deposit because of his relationship with ICT’s Parekh. Parekh’s mobile phone was switched off when Bloomberg News called seeking comment.
Zingaphi Jakuja, spokeswoman for the Department of Mineral Resources, said she couldn’t immediately comment when Bloomberg News contacted her on her mobile phone.
Kumba was unchanged at 450 rand at the 5 p.m. close in Johannesburg, giving it a market value of 145 billion rand ($21 billion).
ArcelorMittal, based in Luxembourg, is the world’s largest steelmaker.
Source: Bloomberg
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