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Johannesburg - ArcelorMittal South Africa [JSE: ACL] a unit of the world's largest steelmaker, said on Monday it would lose R1.1bn from a furnace failure at its Newcastle plant.
The company said last month that a failure in the gas cleaning plant led to a partial collapse of the dust catcher.
The steelmaker said repairs are progressing according to plan and a new cyclone is being installed.
Recommissioning of the furnace is planned for the first week of December, it said.
The company had secured around 240 000 tonnes of steel from external sources to boost supplies to its customers and the additional steel will be available from mid-October. About 445 000 tonnes of steel were lost due to the incident.
"The financial loss at this stage is estimated at R1.1bn, which includes property damage of R245m," the company said.
ArcelorMittal said it is preparing an insurance claim, on which the deductible would be $45m.
The furnace failure is likely to impact an already subdued outlook for the company. Higher input costs and a strong rand led to a 63% drop in first-half profit and the steelmaker forecast a difficult third quarter, partially due to a recent strike over wages and a planned maintenance shutdown at one of its plants.
The company said last month that a failure in the gas cleaning plant led to a partial collapse of the dust catcher.
The steelmaker said repairs are progressing according to plan and a new cyclone is being installed.
Recommissioning of the furnace is planned for the first week of December, it said.
The company had secured around 240 000 tonnes of steel from external sources to boost supplies to its customers and the additional steel will be available from mid-October. About 445 000 tonnes of steel were lost due to the incident.
"The financial loss at this stage is estimated at R1.1bn, which includes property damage of R245m," the company said.
ArcelorMittal said it is preparing an insurance claim, on which the deductible would be $45m.
The furnace failure is likely to impact an already subdued outlook for the company. Higher input costs and a strong rand led to a 63% drop in first-half profit and the steelmaker forecast a difficult third quarter, partially due to a recent strike over wages and a planned maintenance shutdown at one of its plants.
