South African steel producer ArcelorMittal South Africa Ltd (AMSA) and national development finance institution Industrial Development Corporation of South Africa (IDC) have resumed negotiations on a potential transaction for AMSA’s steel operations, including its key mills, after earlier talks stalled last year, according to media reports.
AMSA is engaged in advanced discussions with ArcelorMittal Group and the IDC on a possible deal structured around a non-binding term sheet. These talks aim to find a sustainable solution for the future of the company’s steel assets in South Africa.
The resumption of talks comes less than three months after previous negotiations collapsed in November 2025, with ArcelorMittal rejecting an informal bid of about ZAR 8.5 billion ($525.82 million), as SteelOrbis previously reported.
Mill closures
AMSA’s discussions with the IDC and the South African government date back to November 2023, when the steelmaker revealed plans to close two long steel mills producing key grades for automotive and mining sectors, citing structural pressures. At the time, the IDC, which holds a stake of roughly eight percent in AMSA, provided financial support to delay closures and explore strategic options.
Since then, the company shut two steel mills and an iron ore mine but continues to operate its Vanderbijlpark mill, which produces flat steel products, while the other facilities remain idled.
