ACL - ArcelorMittal South Africa Limited - Cautionary announcement - Structural
ACL
ACL
ACL - ArcelorMittal South Africa Limited - Cautionary announcement - Structural
failure at Newcastle Facility
ArcelorMittal South Africa Limited
(Incorporated in the Republic of South Africa)
Registration number: 1989/002164/06
Share code: ACL & ISIN: ZAE000134961
("ArcelorMittal South Africa" or "the company")
CAUTIONARY ANNOUNCEMENT - STRUCTURAL FAILURE AT NEWCASTLE FACILITY
Shareholders are advised that ArcelorMittal South Africa has confirmed that a
structural failure occurred in the gas cleaning plant at its Newcastle facility
on Friday 5 August 2011 resulting in the dust catcher partially collapsing. The
damage has rendered the blast furnace inoperable and repairs are expected to be
completed in approximately three months. The Newcastle mills will process all
the available steel inventory until the end of August 2011.
ArcelorMittal South Africa management is in the process of exploring options to
augment the supply to meet the domestic customer requirements for the next three
months. A letter declaring force majeure was issued to customers on Thursday 11
August 2011.
At this early stage and excluding any mitigating actions, the company estimates
that it could lose around 400 000 tonne as a result of this incident. The
financial impact is estimated to be substantial considering the potential sales
volume loss. Insurers were notified of the incident and a claim will be
submitted once the actual repair costs and consequential losses are finalised.
ArcelorMittal South Africa will do its utmost to ensure supplies of
feedstock/products to its customers.
No injuries were reported as a result of this incident.
Accordingly, shareholders are advised to exercise caution when dealing in the
company`s securities until a further announcement is made.
12 August 2011
Vanderbijlpark
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 12/08/2011 17:32:15 Produced by the JSE SENS Department.
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