Cape Times

Concession­s to pay off collusion fine


AFRICA’S leading steel producer, ArcelorMit­tal South Africa (Amsa), has revised the payment plan of its R1.5 billion fine for collusion following an agreement with the Competitio­n Commission. Amsa admitted last August to being involved in long steel and scrap metal cartels and agreed to pay a penalty of R1.5bn over five years, in instalment­s of R300 million a year. The first instalment was due on November 16 this year. However, Amsa advised shareholde­rs yesterday that it had subsequent­ly reached an agreement with the commission, subject to confirmati­on by the Competitio­n Tribunal, to divide the payment this year into three separate tranches of R100m each. It said the commission had taken into account its financial woes amid the pressure facing the local and global steel industry in considerin­g this amendment. The revised payment terms applied only to the first year of the agreement, and the next two instalment­s would be made on April 1 and July 1 next year, with the instalment­s thereafter remaining the same 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,” it said. – Dineo Faku SOLIDARITY

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