bold spirit - ArcelorMittal South Africa

49
ArcelorMittal South Africa
Annual Report 2010
Net operating profit–
Coke and Chemicals (Rm)
184
727
1 743
449
985
2006
2007
2008
2009
2010
Our Coke and Chemicals segment
produces commercial coke for the
ferroalloy industry from coke batteries
located in Pretoria and Newcastle
Works, as well as from excess capacity
at Vanderbijlpark and Newcastle
Works when available. We also
process and beneficiate metallurgical
and steel by-products, including coal
tar.
Economic recovery mainly in the
ferroalloy industry contributed
positively to the performance figures
for the year under review. Revenue
increased from R1 653 million in
2009 to R2 449 million in 2010, with
net operating income increasing from
R449 million in 2009 to R985 million
in 2010.
Market conditions
Market conditions for commercial
coke were much improved from the
Operational results
Year ended
31 December
2010 2009
Revenue (Rm) 2 449 1 653
EBITDA 1 029 556
Net operating income (Rm) 985 449
Capital expenditure (Rm) 29 9
Sales volumes (’000 t) 1 642 1 385
– Coke 630 433
– Tar 125 111
– Other 887 851
Number of employees 241 250
depressed situation experienced in
2009, with both demand and prices
increasing to reasonable levels.
Availability of commercial coke for
sale was unfortunately limited by the
higher demand for metallurgical coke
from our steel making operations.
Capital expenditure
In 2010 Coke and Chemicals spent
R29 million. The main focus of the
capital expenditure programme was
addressing safety, maintenance and
environmental projects.