Afrimat puts record straight regarding Competition Commission inquiry
Johannesburg, 3 April 2017 – Afrimat, a leading open pit mining company providing industrial minerals and construction materials, herewith responds to statements in the media concerning the Competition Commission's referral of a complaint to the Competition Tribunal.
Andries van Heerden, CEO of Afrimat confirms that, "the affected subsidiary of Afrimat, Clinker Supplies (Pty) Ltd (‘Clinker Supplies’), has been co-operating fully with the Competition Commission (‘the Commission’) since the Commission commenced its investigation in 2015. We have received notification from the Commission, that it has referred a complaint to the Competition Tribunal (‘the Tribunal’) alleging abuse of dominance, by a subsidiary of the company with regards to excessive pricing." He went on to explain that Clinker Supplies has considered the complaint, taken legal advice and does not consider there to be any merit in the complaint. "Clinker Supplies will vigorously defend itself before the Tribunal," van Heerden went on to say.
Media coverage indicates that the complaint referred and the proposed penalty sought are against Afrimat. Where in fact, the matter referred to the Tribunal concerns the conduct of a subsidiary of Afrimat’s, Clinker Supplies. The initial complaint investigated by the Commission included allegations of price discrimination and margin squeeze in favour of another Afrimat subsidiary, SA Block (Pty) Ltd, however the Commission, following its investigation, only referred an excessive pricing complaint to the Tribunal.
"Afrimat's view is that there is no merit in the excessive pricing allegations and it is with this in mind, that we continued to engage with the Commission." Van Heerden goes on to explain that Clinker Supplies will continue to price clinker competitively against other substitutable aggregates. "Clinker is not a unique product. There are a number of other aggregates with which it can be substituted that are available in the same areas where clinker is sold," van Heerden went on to say.
Van Heerden concludes by indicating that "For the past two years Afrimat has co-operated intensively with the Commission in their investigation. Both Afrimat and Clinker Supplies would value the opportunity to present their case to the Tribunal and look forward to seeing the matter finalised."
Issued for: Afrimat Limited
Contact: Andries van Heerden, Chief Executive Officer (CEO)
Account: Keyter Rech Investor Solutions
Contact: Vanessa Rech
Tel: 083 307 5600 or 087-351-3814 (landline)
Date: 3 April 2017