South Africa: ArcelorMittal seeks Saldanha IPP

ArcelorMittal South Africa is looking for an independent power producer to build an 800MW gas-fired power station at its Saldanha steel works to help ensure the scheme’s survival, chief executive Paul O’Flaherty told Reuters on 12 February. ArcelorMittal, which is reviewing its Saldanha operation partly due to high electricity costs, is willing to take as much as 220MW of the plant’s capacity and is in talks with other industrial users and the government to sign long-term contracts for the rest. Building an independent power plant is vital for the survival of Saldanha, O’Flaherty told Reuters, adding that Eskom’s rising electricity prices were unaffordable.