ARCELORMITTAL SOUTH AFRICA LIMITED - Conclusion of contract manufacturing agreement between Arcelormittal SA and highveld structural mill Proprietary

Conclusion of contract manufacturing  agreement  between Arcelormittal  SA and highveld structural  mill Proprietary

ArcelorMittal South Africa Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1989/002164/06)
Share Code: ACL
ISIN: ZAE000134961
(“ArcelorMittal South Africa”)


CONCLUSION OF CONTRACT MANUFACTURING  AGREEMENT  BETWEEN
ARCELORMITTAL  SOUTH AFRICA AND HIGHVELD STRUCTURAL  MILL
PROPRIETARY LIMITED (“HSM”)  AND  EVRAZ HIGHVELD STEEL &
VANADIUM LIMITED (IN BUSINESS RESCUE) (“Highveld”)


Shareholders have been informed previously that ArcelorMittal
South Africa was investigating the possibility of supplying
blooms and slabs to    Highveld for processing into heavy
structural steel.


We are pleased  to advise that a contract manufacturing
agreement (“Agreement”),  which is still  subject  to     certain
conditions  precedent, has now been   concluded   between
ArcelorMittal South Africa, Highveld and HSM (a subsidiary of
Highveld) in terms of which ArcelorMittal South Africa will
supply       blooms      and     slabs      to   HSM       for   processing       into    heavy
structural steel. It is also dependent on the implementation
of duties on the products to be manufactured in the heavy
section mill, and the application that has been submitted to
the International Trade Administration Commission (ITAC) in
this regard will need to be finalised.


This will result in the re-opening of the Highveld heavy
section mill by the Business Rescue Practitioner, thus making
available the supply of heavy structural products into the
South African market.


The    re-opening  of the heavy section mill is  a  positive
development and will result in the added benefit of creating
further jobs.
The Agreement will operate for an initial period of two years
with an option to extend for a further period of one year.


ArcelorMittal South Africa also has an option to purchase the
business of HSM and the land or the shares in HSM, subject to
certain further regulatory and governance approvals that may
be required.


The detail regarding implementation is being finalised but it
is   envisaged   that  the heavy   sections   mill   will   begin
operations in 2017.


This important milestone was made possible with the support of
various stakeholders, for which support we are all grateful.


22 December 2016
Vanderbijlpark Works


Sponsor to ArcelorMittal South Africa Limited
J.P. Morgan Equities South Africa Pty Ltd


For further information please contact:
Mr Themba Sepotokele
Manager: Corporate Communications, Corporate Affairs
Tel: (016) 889 2425
(alternatively Tracey Peterson on 083 408 7173)

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