Story audio is generated using AI
Manngwe Mining, which has accused steel major ArcelorMittal South Africa (Amsa) of abusing its market dominance, is seeking interim relief from the Competition Tribunal as tensions between the two companies escalate.The miner said in a statement last week that legal processes are under way and it expects further filings before the Competition Tribunal, with Amsa expected to file an answering affidavit by the weekend.On Friday, this had not happened, a media representative of Manngwe told Business Day. Amsa did not confirm or deny if it would file an affidavit but instead reiterated that Manngwe’s claims are baseless.Amsa told Business Day previously that it was prepared to act against the company should tensions escalate further.Business Day reported last month that the Competition Commission was investigating allegations of racial discrimination and exclusionary conduct by Amsa against Manngwe, a former supplier.The company owns, among other assets, the R606m Assen Iron Ore Mine in North West province, which was set up expressly to supply Amsa with iron ore, helped in part by prefunding and favourable loan terms provided by Amsa.But the relationship between Amsa and the supplier has soured in recent years as Manngwe accused Amsa of forcing it into unfavourable and even predatory contracts.Manngwe, a 100% black-owned company, has accused Amsa of offering it a marked down price on purely racial grounds, citing the far higher price it pays to Afrimat, another supplier which happens to be largely white owned.Amsa denies all of the allegations laid out by Manngwe, citing Manngwe’s poor and inconsistent supply as the cause of the pricing discrepancy and the mine’s steady decline.“The relationship between Amsa and Manngwe regrettably became increasingly difficult over time due to a range of commercial and operational challenges, including Manngwe’s inconsistent supply performance, quality concerns, pricing issues, governance instability and uncertainty regarding long-term supply sustainability,” the company said in May.In a statement on Friday, Manngwe CEO Mutheiwana Rambuwani said his company had sought interim relief from the Competition Tribunal, “with Amsa expected to file its responding affidavit this week”.“Amsa was, in effect, our only buyer and it was that monopsony position that made this possible. To make the resumption of orders conditional on our parting with equity placed unsustainable pressure on the business,” he said.“We believe that conduct is unfair — and not in line with the spirit of the Competition Act and the protections it affords suppliers — and it is the reason we have approached the tribunal.”
