- Economic Catastrophe on the Horizon: With AMSA’s Newcastle Works set to close one of its divisions, the Amajuba District Municipality faces the task of protecting the region from a looming economic disaster.
- Leadership Under Fire: Acting Mayor Thembelihle Mthembu has thrust the ArcelorMittal crisis to the forefront of his agenda, recognising an urgent need for intervention to save the district from economic ruin.
- Massive Job Losses Predicted: The imminent closure threatens to obliterate over 3000 jobs, with a ripple effect that could plunge the area into deeper poverty, unemployment, and social unrest.
- Strategic Alliances Forming: In a race against time, the Amajuba District is forging partnerships with the KZN Provincial Government to craft innovative strategies that could shield the community from the closure’s severe impacts.
The closure of ArcelorMittal South Africa’s (AMSA) Longs Business at Newcastle Works is now imminent, compelling the Amajuba District Municipality to devise strategic measures to cushion the profound impact of the steel giant’s decision to terminate its operations in Newcastle.
On Monday, 17 February 2025, Councillor Thembelihle Mthembu, Acting Mayor of the Amajuba District Municipality, convened a media briefing to reflect on his initial 50 days in office. In the wake of AMSA’s announcement on 6 January 2025 to wind down its Longs Business at Newcastle Works, Cllr Mthembu underscored this development as a critical issue demanding the District Municipality’s urgent attention.
Speaking to the press, Cllr Mthembu declared, “The looming crisis at the ArcelorMittal Newcastle Plant closure, which will result in approximately 3000 job losses, remains a major concern for our district. This closure will not only have a devastating effect on the livelihoods of our citizens but will have far-reaching economic implications for our district.” He further emphasised that the cessation of operations at Newcastle Works would intensify poverty, unemployment, and crime across the region.
In response to the challenge, Cllr Mthembu revealed that the District Municipality was actively partnering with the KwaZulu-Natal Provincial Government and other key stakeholders to devise strategies to mitigate the fallout from AMSA’s decision.
He further noted, “The national government and ArcelorMittal South Africa are currently in talks, and we are waiting for the outcome of these discussions, which is expected in a few weeks.”
Acknowledging the ripple effects of the closure beyond Newcastle, impacting neighbouring Municipalities, Cllr Mthembu assured the residents of Newcastle, Utrecht, and Dannhauser—communities within the Amajuba District Municipality’s jurisdiction—that the local authority is steadfastly committed to identifying solutions that bolster economic resilience and curb further escalation of unemployment.
It is worth noting that, as reported by Newcastillian News on 6 January 2025, AMSA attributed its decision to persistent high logistics and energy costs, compounded by inadequate policy support—specifically the Price Preference System (PPS) and Export Scrap Tax.
These factors have severely undermined the viability of the Newcastle Works division, which depends on locally sourced raw materials, rendering the Longs Business unsustainable.
To read more, click here.
Subsequently, in early February 2025, Newcastillian News also reported a significant development: AMSA opted to postpone the planned transition of its Longs Business into care and maintenance, originally scheduled for late January 2025. This one-month reprieve, supported by a R380 million shareholder loan from the Industrial Development Corporation (IDC), enables the fulfilment of outstanding orders for critical sectors such as automotive and seamless tubes, while discussions with the South African Government regarding the division’s future persist.
To read more, click here.
As the Amajuba District Municipality collaborates closely with the Provincial Government to explore every avenue within its authority to safeguard local economic stability, what are your views?
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Comments 1
It’s so late 😫 in the day.
It’s windows dressing of pretending to care… the anc ramaposa cadres don’t care about Newcastle or the country or jobs for the south african people.
All anc cadres have to do is scrap the scrap export taxes/ levies. The anc cadres introduced it the same cadres can revoke it.
Ramaposa cadres can also reduce the electricity cost . It will reduce operational cost immediately.
The anc cadres are the government on paper BUT they act as if they are just non capable to take this responsibility and LEAD..
It’s how easy all jobs can be saved. Today.
But ramaposa anc cadres Parks Tau just won’t.
Sad to have a country with no caring government.
To wait on provincial is laughable