South African steel producer ArcelorMittal South Africa has stepped up its efforts to secure control of raw material resources in Southern Africa, and is ready to partner with black economic empowerment (BEE) companies that have secured exploration rights for those categories of resources.
Speaking on Wednesday, CEO Nonkululeko Nyembezi-Heita said that the group was intensifying its efforts to secure control of additional iron ore and coal resources although she said that the group was following a strategy of lowering costs rather than any concerns over security of supply.
"We are not concerned about accessing iron ore, we are concerned about having control over than iron-ore," she explained, adding that the same was true for coal, which underpinned its decision to invest in Coal of Africa. ArcelorMittal lost out in a long-running dispute with Kumba Iron Ore over its right to participate in the R8.5-million Sishen South project, in the Northern Cape. The imminent closure of the Thabazimbi mine, in Limpopo province, also meant that an alternative supply source was needed to close a capacity shortfall.
The company reported a loss of R440-million for the year ended December 31, 2009 against a record profit of R9,5-billion in 2008 but still had more than R4-billion of cash on hand, which it could use for investments and acquisitions, including into mining assets or companies.
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