ArcelorMittal SA said in a media statement released today (18-12-2017) that in accordance with the terms of the agreement signed with the Competition Commission of SA in August 2016, the Company is set to pay an amount of R1.5 billion over five years.
The amount will be paid in instalments of no less than R300 million per annum. The first instalment was due on 16 November 2017.
In the media release, shareholders are advised that ArcelorMittal South Africa has subsequently reached an agreement with the Competition Commission, subject to confirmation by the Competition Tribunal, to divide the 2017 payment into three separate tranches of R100 million each.
The Commission has taken into account the Company’s financial position, resulting from the tough trading conditions in the global and local steel industries, in considering this amendment. The revised payment terms apply only to the first year of the agreement and the next two instalments will be made on 1 April 2018 and 1 July 2018. Thereafter, the instalments will remain as agreed.
“ArcelorMittal South Africa is firmly committed to the long-term sustainability of the South African steel industry and is extremely encouraged by the support provided by Government to the steel industry to ensure that it can continue to contribute to economic growth in South Africa,” says ArcelorMittal South Africa CEO, Wim de Klerk.