Business Times<\/a>, efforts are underway by the government to create a rescue package for AMSA’s embattled steel mills.<\/p>\n\n\n\nBusiness Times said that Department of Trade, Industry and Competition (DTIC) Minister Parks Tau and Finance Minister Enoch Godongwana have created a draft rescue package of up to R1 billion. <\/p>\n\n\n\n
Following years of government inactivity, the proposed crisis has jolted the government into action to keep the private business going. <\/p>\n\n\n\n
Moreover, it is believed that the Public Investment Corp (PIC),\u00a0the Industrial Development Corp (IDC) and the Unemployment Insurance Fund (UIF) could also be part of the rescue package. <\/p>\n\n\n\n
But one senior government source with knowledge of the talks said there was some opposition to a bailout because there was no guarantee Amsa would not come back later for more.<\/p>\n\n\n\n
However, a senior government source said there was opposition to a bailout as there was no guarantee Amsa would ask for more in the future. <\/p>\n\n\n\n
They added that AMSA was not investing in plant upgrades even when they were making profits. <\/p>\n\n\n\n
They added that the solution should not be a bailout and that an alternative plan would be put on the table shortly. <\/p>\n\n\n\n
Moreover, the IDC, which is already an AMSA shareholder, has already pumped R1 billion to keep the company afloat. <\/p>\n\n\n\n
The IDC said that it would engage with relevant stakeholders of AMSA’s issues, while the PIC said that it would do what was best for its clients and their beneficiaries.<\/p>\n\n\n\n
Indian billionaire plan <\/h2>\n\n\n\n
However, there is potentially a saving light from India. <\/p>\n\n\n\n
President Cyril Ramaphosa met with Steelmaking mogul Lakshmi Mittal in Davos earlier this week at the World Economic Forum. <\/p>\n\n\n\n
Mittal has previously met with Godongwana, Tau, and Electricity Minister Kgosientsho Ramokgopa.<\/p>\n\n\n\n
Based in the UK, Mittal is worth $16 billion (roughly R300 billion). He is the current chairman of ArcelorMittal, which is the world’s second-largest steelmaking company<\/p>\n\n\n\n
AMSA is majority-owned by ArcelorMittal. <\/p>\n\n\n\n
Despite reaching out for possible assistance, Mittal\u2019s relationship with the South African government has faced issues. <\/p>\n\n\n\n
After acquiring Iscor, the former state-owned steelmaker in 2003, Mittal’s company was faced with accusations of charging excessive prices and neglecting plant maintenance.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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