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The future competitive position of ArcelorMittal South Africa now truly lies in the balance. If it loses its most favourable iron-ore supply agreement, which emerged following the unbundling of Iscor into separate mining and steel companies in 2001, its cost structure is going to move into an entirely new bracket. Add to that the fact that power prices are set to rise by a nominal 25% a year over the next three years and the business case could all but vanish. Given its record of ignoring customer and government appeals for a more sympathetic pricing regime, perhaps not too many tears will be shed. But would this fall-off in competitiveness be in the national interest? That's not entirely certain.
