http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.05Change: -0.06
R/$ = 11.99Change: -0.14
Au 1202.62 $/ozChange: -3.53
Pt 1150.50 $/ozChange: -5.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 08, 2011

Draft carbon tax a ‘nonstarter’, Nyembezi-Heita asserts

Back
ArcelorMittal South Africa CEO Nonkululeko Nyembezi-Heita and CFO Rudolph Torlage on possible power generation projects and the impact of a carbon tax. Camera Work and Editing: Darlene Creamer. (8/2/2011)
 
 
 
Africa|Eskom|Waste|Africa|Energy|Steel|Waste
Africa|Eskom|Waste|Africa|Energy|Steel|Waste
africa-company|eskom|waste-company|africa|energy|steel|waste
© Reuse this



Steel producer ArcelorMittal South Africa (Mittal) has warned that the proposed introduction of carbon taxes could undermine its competitiveness against both developing and developed country steel producers, which do not currently confront such a tax burden, and could also materially affect its profitability.

In fact, CFO Rudolph Torlage indicated on Tuesday that, had the proposed tax been introduced during 2010, it would have equated to almost 50% of the group’s earnings before interest, tax, depreciation and amortisation of R3,5-billion.

“So from our perspective, this is a nonstarter,” CEO Nonkululeko Nyembezi-Heita added. “So, we are hoping very much that this is not quite where we will end up.”

She revealed that Mittal was in the process of preparing its formal comment on the discussion document, which would be completed ahead of the February 28 deadline set for such public feedback.

A recent report by Deloitte indicated that, should carbon dioxide equivalent (CO2e) prices be set at R165/t, it could yield R82,5-billion in additional tax revenue for the South African government, given estimated total yearly emissions of about 500-million tons of Co2e.

While the National Treasury’s discussion document, which was released in December, explored three carbon tax options, it stated that a tax imposed directly on measured emissions of CO2 appeared to be the “most appropriate”.

Deloitte calculated that the model could result in Eskom paying R37-billion a year in carbon taxes, while Sasol could be required to pay some R9,9-billion a year, and Mittal about R1,7-billion a year.

“Were the carbon tax to be implemented in the form currently contemplated, it would have a devastating impact on this company’s financial performance,” Nyembezi-Heita argued.

She stressed that Mittal was also moving to meet its target of reducing CO2 emission by 8% a ton of steel produced by 2020, with 2007 as the base year.

As a signatory to the National Energy Accord, the JSE-listed company had also committed itself to reducing its electricity consumption by 12% by 2014, and the group was looking to increase its internal generation capacity from the current level of around 80 MW.

It was even considering wind generation options at Saldanha Bay, with the primary focus on capturing waste heat and off gases for conversion into electricity.

Mittal was also investigating ways to make its coke batteries compliant with the rigours of South Africa’s new Air Quality Act, which came into force last year. Noncompliant facilities had five years to become compliant and ten years to meet the stipulations of the new Act.

Should Mittal move towards total compliance it was likely involve a “significant capital outlay”.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Metals News
Steel production by South African manufacturers dropped 11.8% year-on-year to 500 000 t in February, bucking a global trend that saw world crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) increasing by a marginal 0.6%...
INDUSTRY PURSUIT Project Aeroswift will be able to produce components with various metals, including titanium and stainless steel alloys
South African research institute the Council for Scientific and Industrial Research’s (CSIR’s) National Laser Centre (NLC) has confirmed that its large-area high-speed selective laser melting (SLM) system, also known as the Aeroswift project, is on track to produce...
IMPROVED PROFICIENCY The speed of a fibre laser is several times higher than that of a CO2 laser
The laser-cutting industry has transitioned in recent years from using carbon dioxide (CO2) lasers to fibre laser-cutting systems, notes Switzerland-based sheet metal cutting and bending equipment supplier Bystronic. The light source of a fibre-optic laser-cutting...
Article contains comments
More
 
 
Latest News
Updated 18 minutes ago About 1 000 contract workers at South Africa's Eskom Medupi power plant have been fired for vandalising property during this week's one-day a strike over poor living conditions and higher pay, the power producer's spokesperson said on Friday. "Some of the workers...
Updated 58 minutes ago Government continues to stress the importance of the agroprocessing agenda in an attempt to bolster economic growth and job creation, while also securing South Africa’s future food requirements in an economy that fell short of its growth target in 2014, achieving...
The presidency on Thursday said it would not entertain what it called rumours and gossip about operations at Eskom. "President Jacob Zuma has been kept fully briefed about the developments at Eskom and the attempts being made by the Minister of Public Enterprises, Ms...
More
 
 
Recent Research Reports
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96