Over-regulation, high production costs put ArcelorMittal on the back foot | IOL Business Report

JOHANNESBURG – ArcelorMittal South Africa has said it is fighting losing battles behind the scenes against over-regulation and high production costs, including that of electricity, as the six months to June indicate a bruising period in which it made a R222 million loss from a R1.2 billion profit a year earlier.

“These unaffordable increases resulted in R168m in additional costs against the comparable period. “Winter tariffs add on average R110m to the monthly electricity cost of the company,” said Verster. Verster said the company had so far received negative feedback from Eskom, which had turned down its proposed tariff reduction, adding that Amsa planned to convince Eskom otherwise.

Amsa last month said it would embark on a restructuring exercise that would possibly result in 2 000 job losses, citing a difficult domestic economic environment. The group warned that South Africa’s steel consumption was at a 10-year low as it posted a headline loss of R638m compared to headline earnings of R54m for the same period last year on lower sales prices and volumes, higher electricity, rail and port tariffs, and sharp increases in iron ore.“In South Africa we need a 1.

Revenue decreased by 5 percent to R21.74bn primarily as a result of lower sales volumes of 9 percent, and on a positive note, the weak exchange added R1.2bn to income. In a bid to curb rising costs, Verster said the group would intensify engagements with key stakeholders to reduce the costs of electricity, rail and iron ore.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Zambia economy to benefit from China bilateral cooperation: expert | IOL Business ReportChingola Chamber of Commerce President Fred Musonda said Zambia was benefiting from China in ways such as improved trade with the Asian nation. Dont sell the whole of Zambia to China.
Source: IOL - 🏆 46. / 51 Read more »

Sars places three execs on precautionary suspension | IOL Business ReportThe reason for the suspension is due to an ongoing comprehensive review of the whole SARS leadership by the Commissioner in terms of good governance Are they Black
Source: IOL - 🏆 46. / 51 Read more »

Peter Moyo still barred from Old Mutual despite winning court case | IOL Business ReportMoyo was fired for alleged misconduct owing to the conflict of interest in NMT Group, the investment company he founded. Wenzene o moyo batho ba rona ke mathatha a sechaba sa rantsho re tlholegile
Source: IOL - 🏆 46. / 51 Read more »

Unions up in arms over Standard Bank branch closures threatening 1 200 jobs | IOL Business ReportSasbo assistant general secretary says the finance union will not condone any action by the employer that could place any of its members at risk. StandardBankZA Last time it was 104.what changed. StandardBankZA Forget the number, where was these unions when the banks were negotiating closing the banks? It starts in the boardroom before coming to the masses, they were there sleeping agreeing to everything now that the time has come they act like they care 😡
Source: IOL - 🏆 46. / 51 Read more »

SA economy recorded a trade surplus of R4.42bn in June | IOL Business ReportA sense of optimism temporarily washed over the South African economy this afternoon after the nation recorded a trade surplus ... InuWolfie what does this mean? Filling a bucket with holes with an eyedropper. cc MthuliNcube MoeChanda GGuvamatanga InfoMinZW nickmangwana
Source: IOL - 🏆 46. / 51 Read more »