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South African Iron Ore Mine Faces Closure Amid ArcelorMittal Crisis
ByAinvest
Tuesday, Aug 19, 2025 6:46 am ET1min read
South African iron ore mine Beeshoek may close due to sole customer ArcelorMittal South Africa's financial struggles, which could result in nearly 700 job losses. Assmang, the mine's owner, has considered alternatives but deemed them unviable. ArcelorMittal South Africa plans to close two long steel plants and has reported a 1 billion rand loss in the first half of this year.
South African iron ore mine Beeshoek may close due to its sole customer, ArcelorMittal South Africa, facing severe financial difficulties. The closure could result in the loss of nearly 700 jobs, according to a notice to unions seen by Reuters [1].ArcelorMittal South Africa has confirmed that it will not sign a three-year contract with Beeshoek, despite earlier indications that it would do so. The steelmaker reported a 1 billion rand ($56.75 million) loss in the six months to June 30, citing weak local demand, high electricity tariffs, and competition from Chinese imports and local scrap metal recycling mini-mills [1].
Assmang, the mine's owner, has considered alternatives such as exports but deemed them unviable. The company stated that the mine has only one significant customer, ArcelorMittal South Africa, and that the customer is not willing to conclude a long-term contract [1].
ArcelorMittal South Africa plans to close its loss-making long steel plants in Newcastle and Vereeniging, with a decision expected in the coming days. The move would affect 3,500 direct jobs and tens of thousands more in related industries [2].
The South African government is engaged in crisis negotiations with ArcelorMittal regarding the future of the company's unprofitable steel mill in the country. The negotiations involve the potential closure of the Newcastle facility, which produces steel for use in the country's automotive, mining, and construction industries [2].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3UB0CJ:0-s-african-iron-ore-mine-faces-closure-as-arcelormittal-crisis-weighs/
[2] https://seekingalpha.com/news/4484640-arcelormittal-south-africa-in-talks-over-fate-of-unprofitable-steel-mill
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