VZCZCXRO9186
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSA #1667 2120901
ZNR UUUUU ZZH
R 300901Z JUL 08
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 5258
INFO RUCPDC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0826
RUEHRL/AMEMBASSY BERLIN 0633
RUEHBY/AMEMBASSY CANBERRA 0700
RUEHLO/AMEMBASSY LONDON 1570
RUEHMO/AMEMBASSY MOSCOW 0831
RUEHOT/AMEMBASSY OTTAWA 0669
RUEHFR/AMEMBASSY PARIS 1410

UNCLAS PRETORIA 001667 
 
SIPDIS 
SENSITIVE 
 
STATE PLEASE PASS USAID 
STATE PLEASE PASS USGS 
DEPT FOR AF/S, ISN, EEB/ESC AND CBA 
DOE FOR T.SPERL, G.PERSON, A.BIENAWSKI, M.SCOTT, L.PARKER 
DOC FOR ITA DIEMOND 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EMIN SF
SUBJECT: ANSAC SODA ASH IMPORTS AT RISK 
 
¶1.  (SBU) SUMMARY: American National Soda Ash Corporation (ANSAC) 
CEO John Andrews told Ambassador that the company was going to 
reduce soda ash shipments to customers in South Africa because of 
uncertainty related to its on-going competition case and its 
separate application to the Department of Trade and Industry (DTI) 
for an exemption as a "critical industry".  Ambassador agreed to 
write a letter to DTI urging an expeditious decision on the 
petition.  End Summary. 
 
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Soda Ash Woes 
------------- 
 
¶2.  (SBU) American National Soda Ash Corporation CEO John Andrews 
met on July 29 with Ambassador to provide an update on the 
challenges it faces in importing soda ash into South Africa on 
behalf of four soda ash producers from Wyoming.  The Competition 
Commission will hold hearings on whether ANSAC is a cartel in late 
August.  This process has been going on for many years and the 
time-frame for a decision is unclear.  ANSAC has separately 
petitioned DTI for a designation as "critical industry" to gain an 
exemption from the Competition Commission rulings.  Andrews asserts 
that there is a global shortage of soda ash and ANSAC's own supply 
is "sold out".  He said that ANSAC will notify the SAG and customers 
that it is cutting its supply to 80 percent immediately and 50 
percent in a few weeks, based on the uncertainty of its legal status 
in South Africa.  Andrews said South African customers (glass, 
detergent, and minerals processing - platinum, vanadium, and 
uranium) will be hurt by this commercial decision which has been 
forced on them.  According to Andrews, ANSAC has about a 25 percent 
share of the South African market and has been doing business for 
thirty years in the country. 
 
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Embassy Action 
-------------- 
 
¶3.  (SBU) Andrews asked for an Embassy overture to the DTI in 
support of its "critical industry" petition, building on USTR 
Schwab's raising this issue last week with Trade Minister Mpahlwa in 
Washington.  Ambassador agreed to write a letter to DTI urging 
expeditious processing of the application, but he cautioned that the 
Embassy could not take a position on the legal case.  CSSA is 
drafting this letter.  CSSA and Econ will attend the August 25 
hearing when ANSAC testifies. 
 
BOST