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Home Steel News ArcelorMittal South Africa to fight power plant lawsuit
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ArcelorMittal South Africa to fight power plant lawsuit

17 Mar 2008 14:58 reported by Ellen Huang

A A A
ArcelorMittal South Africa and the Puerto Rico power plant co. EcoElectrica signed a contract of a 120 MW co generation power plant project used to source waste gas from ArcelorMittal's Vanderbijlpark Steel Works and then sold the electricity to state owned electricity company Eskom under a long term contract.

However now the project is breaking because ArcelorMittal would cancel the project in view of they want a independent business with EcoElectrica. EcoElectrica claimed ArcelorMittal cancelled the JV project because they would skip EcoElectrica and co-work with Eskom directly.

ArcelorMittal said "after an investigation review, the project is not viable" and proposed to buy one generation of EcoElectrica's consents and they would prefer to do business with EcoElectric independently.

Now the case is under lawsuit that EcoElectric would claim for project damage from cancellation for ZAR 27.1 million (US$3.4 million).

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