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ACL - ArcelorMittal South Africa Limited - Cautionary announcement - Structural

Release Date: 12/08/2011 17:32
Code(s): ACL
Wrap Text

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 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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