BEE partner stays with ArcelorMittal SA
Since a peak in June 2008, the company's shares have dropped by more than 98%
ArcelorMittal South Africa's empowerment partner, Likamva Resources, is willing to increase its stake in Africa's biggest steel producer. This is despite the prospect of asset sales and other restructuring plans to boost business in a global market flooded with cheap steal, and a domestic market in its second recession in less than a decade. Noluthando Gosa, a partner at Likamva, said the firm would not hesitate to reinvest, increasing its 17% stake in the loss-making business. The last time ArcelorMittal SA (Amsa) made a profit was in 2010. Imports from China Gosa added that if resources and funds permitted it, Likamva would inject the capital needed to help the company. However, she said, the company had not asked shareholders to do so. Last month, Amsa - which produces about 70% of South Africa's steel - reported a 3.8% fall in the country's steel consumption in the first half of the year in the wake of subdued economic growth and large steel imports from China. Since a peak in J...
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