ArcelorMittal spends R6 billion in taxes

ArcelorMittal South Africa has announced it spent billions of rands on economic contributions, with the bulk, R4.4 billion, spent on state-owned enterprises (SOEs) payments.

Tami Didiza, group executive stakeholder engagement and communications, said the figures contained in the annual integrated report are for the year ended December 31, 2023.

Specific tax contributions

Didiza said apart from the R4.4 billion which went to SOEs, R789 million went to Pay-As-You-Earn (PAYE) taxes; R705 million spent on Net Vat payments; R104 million went to carbon taxes; and the least of the money, R98 million went to municipal assessment rates.

“ArcelorMittal South Africa emphasised its dedication to tax transparency, noting that all taxes are paid to authorities in South Africa, with no tax exposure to other countries or jurisdictions.”  

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According to the company’s website, ArcelorMittal South Africa is the largest steel producer in sub-Saharan Africa. In 2023, it made 2.8 million tons of liquid steel. This was 14% higher than the amount produced in 2022 and 10% lower than the output of 3.1 million tons in 2021.

The steel manufacturer has 9 259 employees and contractors, while it had 9 592 in 2022.

Fraud Prevention

The report applauded the company for its commitment to ethical practices and fraud prevention. In the year 2023, 54 ethics-related incidents were reported to forensic services, compared to 57 in 2022.

“Of these, seven allegations were substantiated, while 13 are still under investigation.”

Didiza said the company provided fraud awareness and prevention training to 1 558 employees and suppliers during the year.

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Company closure

ArcelorMittal South Africa has recently announced it will be halting the closure of its two plants, in Newcastle, KwaZulu-Natal, and Vereeniging, Gauteng. The decision to halt the closure saved 3 500 jobs.

The company said it realised growth and stability over the past months, which was followed by positive engagements it had with various stakeholders.