Delegates at the inaugural Southern African Metals and Engineering Indaba, have called on the government to abandon its plan to implement a carbon emissions tax in 2016. This tax would raise costs to businesses and harm the economy at a time when South Africa is in need of more job creation, according to the Steel and Engineering Industries Federation of Southern Africa (Seifsa).

“Arguing that the country cannot afford carbon taxes, the delegates said that it was vital for the government to show itself to take stakeholders’ concerns seriously by following Australia’s example and abandoning its plans to introduce carbon taxes,” Seifsa says in a statement seen by Kallanish. Last week’s meeting, organised by Seifsa, was attended by policy and decision makers, business owners, senior executives and other stakeholders in the metals and engineering sector from across the Southern African Development Community region.

ArcelorMittal South Africa said last December it would raise its steel prices if the government implemented the emissions tax, which is designed to reduce emissions. The steelmaker has simultaneously been under government pressure to reduce its prices, while competing against China-origin imports that are undercutting it at home.

Ferrochrome, of which South Africa was until last year the world’s largest producer, is also under threat from the emissions tax, whose additional cost could make South African ferrochrome uncompetitive, analysts observe.