Environment

The company’s environmental focus during 2011 and for the foreseeable future will remain on air and water-related projects to ensure compliance with legislation. The requirements of the Air Quality Act (the Act) remain a top priority and significant expenditure will commence over the next five-year period to improve the performance of coke-making facilities at Vanderbijlpark and Newcastle Works.

The new Sinter Plant Emission Abatement Project at Vanderbijlpark Works was completed during 2011 and commissioning is now anticipated by the end of March 2012. This project will significantly reduce particulate and SO₂ emissions from the Vanderbijlpark facility and ensure compliance with the new Act.

Plans remain on track for Newcastle Works to achieve zero effluent discharge status by end 2013. At Vanderbijlpark Works, significant effluent treatment problems were experienced during 2011. Urgent steps have been taken to ensure that the situation is remedied without undue delay.

During 2011, the carbon tax and climate change debate received significant attention, with additional prominence added by the COP 17 event in Durban, which was fully supported by the group. Constructive debate took place with National Treasury during the year regarding the carbon tax proposal and potential structuring options which, as it stands, would have a severe impact on the viability of steel production in South Africa. This engagement is expected to continue during 2012.