Media releases

Joint news release from Harmony and Durban Roodeport Deep

Response to LNM-dti agreement now in public domain 9 June 2004

Response to LNM-dti agreement now in public domain

Harmony and Durban Roodeport Deep (DRD) are complainants in a referral to the Competition Tribunal regarding Iscor’s pricing model for the sale of steel in the domestic market. While they welcomed the principles of the agreement released between the dti and LNM, they said today that it is not sufficient to cause them to withdraw their case.

“We are pleased that the stated objectives are aligned in part with what we are trying to achieve with our referral,” said Ferdi Dippenaar, Harmony Marketing Director. “This includes principally that the upstream and downstream market for steel will be able to enjoy South Africa’s competitive advantage in the production of primary steel.”

The parties are also relieved to see an undertaking to revisit Iscor’s current pricing structure. “However,” said Niel Pretorius, Group Legal Counsel to DRD, “There is not enough substance in this agreement to give comfort that Import Parity Pricing in the circumstances which prompted the referral of the dispute, is acknowledged as being inappropriate, or that any new pricing model will be transparent, consistent and applied universally to the domestic buyers of steel.”

Simon Roberts, the Wits University economist supporting the team points out that that “LNM’s stated plans to develop further steel volumes illustrate the very attractive nature of South Africa as a low-cost steel producer. But only with competitive pricing will these cost advantages lead to gains for the downstream industry.”

Jean Meijer, Director at Cliffe Dekker advising the parties on their referral to the Tribunal said, “Until Harmony and DRD see the results of this agreement – an across-the-board reduction in steel prices and the formulation of a permanent, equitable and enforceable pricing model – we will continue to pursue the matter before the competition authorities and continue to seek the remedies we have requested.”

Issued by:
Beachhead Media & Investor Relations
Jennifer Cohen 011 214 2401 / 082 468 6469 / This email address is being protected from spambots. You need JavaScript enabled to view it.
Dani Cohen 021 487 9000 / 082 897 0443 / This email address is being protected from spambots. You need JavaScript enabled to view it.

On behalf of:
Harmony and DRD

Further info:
Ferdi Dippenaar (currently travelling in the US, but occasionally available on 082 807 3684)
Niel Pretorius 082 800 0558 / This email address is being protected from spambots. You need JavaScript enabled to view it.
Simon Roberts 011 717 8126 / 083 304 2567 / This email address is being protected from spambots. You need JavaScript enabled to view it.
Jean Meijer 011 290 7143 / 083 327 3386 / This email address is being protected from spambots. You need JavaScript enabled to view it.

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