South Africa’s government is holding urgent crisis talks with ArcelorMittal South Africa Ltd. (AMSA) to decide the fate of its loss-making Newcastle steel mill, a facility critical to the nation’s automotive, mining, and construction industries. The closure, set for September 30, 2025, if no solution is found, threatens 3,500 direct jobs and tens of thousands more in dependent sectors.
According to local media, the Department of Trade and Industry and the Industrial Development Corporation (IDC) - AMSA’s second-largest shareholder - are exploring options to keep the plant running, including a ZAR 3.1 billion ($170.28 million) rescue package, as previously reported by SteelOrbis.
On April 1, the IDC began a due diligence review to potentially increase its stake in AMSA, in an effort to stabilize the company’s operations.