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