South Africa close to securing funding deal to keep ArcelorMittal mills operational - Bloomberg

Published 18/03/2025, 19:44
© Reuters.

Investing.com -- South Africa is on the brink of finalizing a funding agreement aimed at preserving the operations of ArcelorMittal (NYSE:MT) SA’s local division, according to Bloomberg, citing individuals knowledgeable about the proceedings. These steel mills are of significant importance to the nation’s economy.

The government is considering an initial support package of around 500 million rand ($28 million) designated specifically for the payment of steelworkers over a six to eight month period, the sources said, requesting anonymity due to the confidential nature of the information. Alongside this, talks are underway about additional bridge financing through the state-owned Industrial Development Corp. (IDC). This would result in an increase of the IDC’s current 8.2% stake in the company.

Furthermore, the government, via the state’s trade department and the IDC, is urging ArcelorMittal South Africa Ltd., also known as AMSA, to entertain offers for the two mills it intends to shut down. These mills are located in the towns of Vereeniging and Newcastle.

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