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Johannesburg - South Africa may re-enter the steel
production industry through the establishment of a state-owned company or a
partnership with the private sector, Business Report newspaper said on
Wednesday.
The paper quoted Public Enterprises Minister Malusi Gigaba
as saying South Africa's decision to sell Iscor, the state steel company which
split into what is now ArcelorMittal SA [JSE:ACL] and Kumba Iron Ore [JSE:KIO], was ill
planned.
"One mistake South Africa made was to sell Iscor,"
the paper quoted him as saying.
Gigaba was also quoted as saying the state needed to take a
"leading role" in driving development but its re-entry into the steel
sector could be in partnership with private industry.
The paper said the minister expressed concern about the
price of steel as South Africa aims to beef up its railway network and rolling
stock.
A top global exporter of iron ore, the country is aiming to lower domestic steel prices which it sees as vital to new industries and job creation.
