Beeshoek Iron Ore Mine Faces Possible Shutdown

Beeshoek iron ore mine. Credit: Assmang

South African mining company Assmang is considering closing its Beeshoek iron ore mine after its only customer, ArcelorMittal South Africa, decided not to renew a supply agreement. This decision could lead to nearly 700 job losses, according to a union notice reviewed by Reuters.

Assmang—a partnership between African Rainbow Minerals and global miner Assore—expressed surprise at ArcelorMittal’s June announcement to back out of a proposed three-year contract, despite earlier signs of commitment. With no other major buyers and export options deemed unfeasible, the mine’s future is now uncertain.

ArcelorMittal South Africa, struggling with financial losses and operational challenges, declined to comment directly. The company recently reported a R1 billion ($56.75 million) loss for the first half of the year, citing weak domestic demand, high energy costs, logistical issues, and stiff competition from Chinese imports and local mini-mills.

The steelmaker is also planning to shut down its long steel production facilities in Newcastle and Vereeniging, although those closures have been postponed for two years pending discussions with government and labor groups.

Trade union Solidarity confirmed that Assmang has begun the process of retrenching all Beeshoek employees. Union representative Adele Rossouw noted that with no export market and the loss of their sole client, the company is left with few options.

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