Centre for Environmental Rights – Advancing Environmental Rights in South Africa

ArcelorMittal South Africa (AMSA) held its annual general meeting (AGM) on 23 May 2025. The AGM was held electronically. AMSA elected not to have the option of attending the AGM in-person at its headquarters in Vanderbijlpark.

The Centre for Environmental Rights (CER) attended the AGM as observers in continued support of the Vaal Environmental Justice Alliance (VEJA) and its mission towards a decarbonized steel industry and environmental justice for the Vaal Triangle.   Participating in the AMSA AGMs provides VEJA shareholders an opportunity to interrogate AMSA on its decision-making, particularly concerning AMSA’s plans to decarbonize its steel making operations.

AMSA is currently the largest steel producer in sub-Saharan Africa and the region’s only primary steel producer. It forms part of the world’s largest steel maker, the ArcelorMittal Group, which holds 68% interest in AMSA, essentially representing the owners by virtue of their stock ownership. In consideration that AMSA has access to world-class research, technological, and financial support, it should be leading the process of decarbonisation at a more ambitious and transparent rate.

AMSA’s Vanderbijlpark steel plant situated in the Vaal Triangle has formed part of the fabric of the Vaal Triangle community for decades. So too does VEJA which consists of organisations and residents of the Vaal Triangle. In fact, one cannot speak of AMSA without speaking of VEJA. For decades VEJA has advocated for, AMSA’s information disclosure on air, water and land pollution, an ambitious plan from AMSA to decarbonise its operations, and to ensure that the health and socio-economic costs of air, water and land pollution is internalized by AMSA through rehabilitation plans.

The Vaal Triangle was declared an air quality and pollution control priority area in 2006. However, national regulators continue approving emissions licenses for AMSA higher than national air quality standards should permit. The concentration of air pollution impacts negatively on the health of residents of the Vaal Triangle, which is especially pronounced where children and the elderly are concerned.

Some members of VEJA hold a small portion of AMSA shares to use in AGM activism. VEJA’s share interest is a drop in the ocean compared to the interest owned by key role players and decision makers. However, VEJA’s shared interest represents their right and opportunity to participate in the AMSA AGM. This is the context in which AMSA’s electronically hosted AGM was held.

In its AGM Guide Best Practices for South Africa, Just Share reports that “while electronic AGMs have increased accessibility, they risk undermining shareholder rights…the risk of technological problems is high – from audio issues to transmission delays to complete Q&A breakdowns.” Just Share reports that unlike electronic only AGMs, “hybrid AGMs that offer both in-person and electronic attendance demonstrate a company’s commitment to robust shareholder dialogue and corporate accountability”.

The risk of technological problems indeed materialized for the members of VEJA who attended the AMSA AGM this year when the functionality on the service provider platform giving shareholders a choice of format to ask written questions did not work on their end; despite the shareholders following the invitation link provided and access code to participate in the AMSA AGM, according to the VEJA shareholders.

While VEJA held a silent demonstration outside the AMSA headquarters exhibiting their persistent struggles with AMSA regarding engagement and accountability; the VEJA shareholders were effectively silenced despite being “in the same room” as AMSA, due to the electronic platform failing to provide access to participants. For VEJA their opportunity to meaningfully engage with AMSA on its responsibility and plans to realise their environmental rights as guaranteed in section 24 of the Constitution of South Africa was fundamentally restricted.

ENDS