Steel maker ArcelorMittal SA, which has reported a full-year profit for the first time in eight years, has applied for lower electricity tariffs for its operations. ArcelorMittal SA CEO Kobus Verster said on Thursday that regulated prices, which include electricity and rail costs, accounted for 18% of the company’s total costs. A favourable electricity pricing model will boost the company’s cost-saving initiative, he said. Africa’s largest steel producer plans to cut its costs by $50 per tonne by 2021. Verster said the company was on course to achieve that. “We are monitoring these things on a weekly basis,” he said. The company's share price rose 7.87%, the highest in five weeks, to close at R3.70. ArcelorMittal's applications to the National Energy Regulator of SA (Nersa) for a special price dispensation — which normally lasts for two years — come in the midst of stiff opposition to Eskom’s application for a tariff hike of more than 15% a year over the next three years, with sever...

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