ACL - ArcelorMittal South Africa Limited - Structural failure at Newcastle
ACL
ACL
ACL - ArcelorMittal South Africa Limited - 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")
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT: STRUCTURAL FAILURE AT NEWCASTLE FACILITY
Shareholders are referred to the announcement dated 12 August 2011, informing
them that a structural failure had occurred in the gas cleaning plant at
ArcelorMittal South Africa`s Newcastle facility, which resulted in the dust
catcher partially collapsing.
At this stage, the repairs are progressing according to plan. Installation of a
new cyclone which has arrived in South Africa from one of our sister plants in
France, is expected to be completed at the end of November 2011 with
recommissioning of the furnace planned for the first week of December.
The company has updated its calculations and the latest estimate is a loss of
445 000 tonnes as a result of the incident. To minimise product shortage in
the local market, we have secured about 240,000 tonnes of steel from various
sources - including from ArcelorMittal Group mills worldwide. These products
are expected to be available to the local market from mid-October.
The financial loss at this stage is estimated at R1.1 billion which includes
property damage of R245 million. The company is working closely with its
insurers and loss adjusters to prepare the claim which will be finalised once
the actual repair cost and consequential losses are known. The deductible on
the claim will be US Dollar 45 million.
Shareholders are advised that as the estimated financial impact of the incident
has been provided, caution in respect of the structural failure at the Newcastle
facility is no longer required to be exercised by shareholders when dealing in
their securities.
26 September 2011
Vanderbijlpark
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 26/09/2011 17:03:01 Produced by the JSE SENS Department.
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