Noluthando Gosa-linked ArcelorMittal SA contributes $334 million to South African gov't

Timilehin Adejumobi -

Key Point

  • Despite financial struggles, ArcelorMittal South Africa, part-owned by Noluthando Gosa, paid $334.7 million in taxes in 2023.
  • Company prioritizes ethical practices with training programs, although some fraud incidents remain under investigation.
  • Steelmaker faces widening losses but emphasizes strong governance even as its stock price falls.

ArcelorMittal South Africa, a Gauteng-based steelmaker partly owned by South African businesswoman Noluthando Gosa, revealed it contributed R6.15 billion (4334.7 million) to the financial resources of the South African government in 2023.

The details, disclosed in the company’s annual integrated report, outline fiscal contributions for the year ending December 31, 2023. This disclosure comes amidst the company’s recent announcement of worsening financial performance.

The breakdown includes R4.4 billion ($241.54 million) in payments to state-owned enterprises, R789 million ($43.31 million) in pay-as-you-earn taxes, R705 million ($38.70 million) in net value-added tax payments, R104 million ($5.71 million) in carbon taxes, and R98 million ($5.38 million) in municipal rates.

Ethical practices and fraud prevention

The report also highlights ArcelorMittal SA’s commitment to ethical practices and fraud prevention. The company reported 54 ethics-related incidents in 2023, a slight decrease from the 57 incidents in 2022.

“Seven allegations were confirmed, with 13 still under investigation,” the company stated. Additionally, over 1,500 employees and suppliers received fraud prevention training in the past year.

Financial challenges persist

Despite these contributions, ArcelorMittal SA faces significant financial challenges. A recent trading statement warned of widening losses in the first half of its 2024 fiscal year compared to the previous year.

The news led to a temporary dip in the company’s share price, though it has since recovered. However, the company’s stock has lost more than 65 percent of its value in the past year, with a current market capitalization of R1.4 billion ($76.85 million).

ArcelorMittal South Africa unit contributes heavily to the economy

ArcelorMittal SA, a South African subsidiary of Luxembourg-based steel giant ArcelorMittal, has an annual production capacity of 7 million metric tonnes of liquid steel. Its significant tax contributions underscore its economic importance even as it weathers financial turbulence and prioritizes strong governance and ethical practices.

Noluthando Gosa, a longstanding leader of esteemed institutions and a non-executive independent director at ArcelorMittal South Africa, derives a substantial portion of her wealth from a diversified investment portfolio, which includes a 6.15 percent stake in the Gauteng-based steelmaker.