- Giant steel maker and one the country’s biggest air polluters after Eskom and Sasol, ArcellorMittal SA, presented their financial results for the first six months ending 30TH June 2024 this week.
- They are upbeat despite the overall weak market and difficult trading conditions thanks to improvements in the country’s energy sector.
Manufacturing production increased by 5.3% year-on- year in April, and by 5.2% month-on-month in April compared with March. This marks the largest monthly increase since August 2021. The absence of load-shedding, depending on its sustainability, should further contribute to the improvement they said.
The company has been criticised for not transitioning their energy supply to green technologies and more reliable supply. A shift to electric arc furnaces and renewable energy would do the job to bring down the company’s SO2 footprint. The country’s environment minister has been taken to court for allowing ArcelorMittal to emit excessive hydrogen sulphide pollution. Read more
“The increase in power generation in recent months (by Eskom), coupled with the renewable energy projects scheduled to come on stream over the next two years, suggests that the drag on economic growth caused by the electricity shortage should gradually diminish, facilitating structurally higher production levels,” the company said.
No sense of urgency
The company said a key focus is the upgrade and expansion of the national logistics infrastructure and the electrical supply grid. Early last year the company announced a 200MW self-funded solar PV project was under development but in reality this is like bringing a pea shooter to a gun fight. Read more
One good takeaway is the company announcing collaboration with renewable-energy original equipment suppliers yielding benefit as they sought to drive localisation. South Africa currently imports most of its solar racking and mounting structures.
Author: Bryan Groenendaal
