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Johannesburg - ArcelorMittal [JSE:ACL] plans to reduce its electricity bill by building an 800 megawatt (MW) compressed natural gas plant at a steel-making facility in the Western Cape, the Business Report newspaper said on Friday.
Intensive power users say expensive tariffs in the local economy make them uncompetitive. Earlier this year, the energy regulator gave the nod to power utility Eskom to raise prices by 8% annually over five years.
Electricity makes up 44% of ArcelorMittal's Saldanha plant costs. The facility uses 160 MW of electricity at a cost of R750m each year.
If the project receives all necessary approvals, ArcelorMittal will import gas from countries such as Angola, the local daily reported.
Eskom declared a supply emergency this week after some of its creaking generating units tripped unexpectedly while others were shut for maintenance. It lifted the warning on Thursday but said supply remained tight.
Eskom last declared an emergency in 2008 when it was forced to introduce rolling blackouts, costing the economy billions of dollars in lost output.
ArcelorMittal complied with Eskom's request for top electricity consumers to reduce usage by 10% earlier this week, which had cost it 200 tonnes of production, the paper said.
The unit of the world's top steelmaker reported a 35% rise in third-quarter profit earlier in November following higher sales.
Intensive power users say expensive tariffs in the local economy make them uncompetitive. Earlier this year, the energy regulator gave the nod to power utility Eskom to raise prices by 8% annually over five years.
Electricity makes up 44% of ArcelorMittal's Saldanha plant costs. The facility uses 160 MW of electricity at a cost of R750m each year.
If the project receives all necessary approvals, ArcelorMittal will import gas from countries such as Angola, the local daily reported.
Eskom declared a supply emergency this week after some of its creaking generating units tripped unexpectedly while others were shut for maintenance. It lifted the warning on Thursday but said supply remained tight.
Eskom last declared an emergency in 2008 when it was forced to introduce rolling blackouts, costing the economy billions of dollars in lost output.
ArcelorMittal complied with Eskom's request for top electricity consumers to reduce usage by 10% earlier this week, which had cost it 200 tonnes of production, the paper said.
The unit of the world's top steelmaker reported a 35% rise in third-quarter profit earlier in November following higher sales.
