Estimated reading time: 2 minutes
ArcelorMittal South Africa (AMSA) declared force majeure on Wednesday, 14 July 2021, due to the civil unrest in KwaZulu-Natal and Gauteng.
With widespread attacks, vandalism and destruction, the KwaZulu-Natal rail corridor to and from Newcastle was also affected, impacting the transport of material in and out of AMSA by both road and rail.
As anarchy reigned over the past week, AMSA explained that its ability to fulfil its contractual/delivery obligations was affected by factors beyond the company’s reasonable control. This, the steel giant pointed out, constituted a force majeure event. As such, the steel giant issued a notice of force majeure to its customers.
This is not the first time AMSA has declared force majeure. One of these occasions was in August 2020, after a blast furnace breakdown at the Newcastle Works site.
Playing an integral role throughout the Northern KwaZulu-Natal community, the force majeure announcement came as an unwanted piece of news for those working with the entity. However, the Newcastillian – Online News has positive news to report on the matter. According to AMSA, the force majeure was lifted on Tuesday, 20 July 2021, as a sense of calm descended on the country. This will see business resume as usual.
What are your thoughts on the situation? Share your views in the comment section below.