On Wednesday, 26 March 2025, the Portfolio Committee on Trade, Industry and Competition met privately with ArcelorMittal South Africa (AMSA). Details of the discussion remain unreleased, but the committee confirmed the focus was AMSA’s plan to close its Newcastle operations.
Steel supports infrastructure, manufacturing, construction, automotive, and mining sectors, so the committee raised concerns about the closure’s impact on South Africa’s reindustrialisation and job creation efforts.
“The committee was of the view that the maintenance of domestic steel production capacity is critical to cushion the economy against global supply shocks,” it stated formally.
Following the meeting, the committee praised the ongoing talks between government and AMSA to find a workable solution, noting progress in the negotiations. “The committee was encouraged by government’s efforts to pursue an industry-wide solution,” it added in its statement.
Separately, at the National Union of Metalworkers of SA (NUMSA) bargaining conference in Johannesburg on Monday, 24 March 2025, dtic Minister Parks Tau updated attendees. He said negotiations with AMSA continued, with a chance to secure the business by week’s end. He emphasised full commitment from all sides to save Newcastle Works but cautioned that success wasn’t certain.
While efforts to sustain Newcastle operations move forward, Investec confirmed it’s managing the sale of non-core, non-strategic land assets for AMSA.
However, the company clarified that it is not involved in selling the Newcastle long steel plant, countering any confusion.
Furthermore, Investec cited AMSA’s Stock Exchange News Service statement from 14 March 2025. It detailed a deal signed on 12 March 2025, where AMSA’s subsidiary, Saldanha Steel, agreed to sell two properties and a rental business in Saldanha, Western Cape, to K2024668522 (South Africa) Proprietary Limited.
The transaction includes Erf 11911 and Erf 11912, plus a rental operation on Erf 11911, set at R134 million (excluding VAT).
The buyer will pay a R10 million cash deposit within 10 days of signing, with the balance due on property transfer, expected around 11 July 2025.
Building on this, AMSA explained the sale reflects the assets’ lack of connection to its main operations, with funds intended for general financing.
The deal depends on conditions: approval by South Africa’s Competition Authorities by 31 May 2025 (unconditional or with acceptable terms), property transfer from another ArcelorMittal subsidiary to Saldanha Steel by 30 April 2025, and the buyer’s VAT registration confirmation shortly after.
Sold “as is,” the agreement includes typical warranties and guarantees. As per the announcement it is a minor transaction under stock exchange rules, requiring no shareholder vote. Valued at R134 million, the properties apparently generate no profit currently.
Investec commented, “Owing to the confidentiality pertaining to client matters, we are unfortunately unable to share any more detail.”
With negotiations to save the steel company nearing a possible conclusion this week, and AMSA selling land to raise funds, the situation remains fluid. What do you think of these developments? Share your views in the comment section below.
9 Responses
They are really just playing woer woer with their workers..one week is this next week it’s that…we as the wifes of these men can see how this is affecting them..all their morals and lust just for going to work is non exciting…these are all short term answers in other words next year it’s gonna be the same problems!!! Pls look for a LONG TERM solution and so far it’s definately beyond ÀMSA reach…..so pls stop reporting about MAYBE and get a definat solution then report and tell the workers what is going on!!!
I hope AMSA Newcastle will continue operating As a last
hope for Newcastle to survive.
For AMSA Land sale it good idea
cause there is land unused that even community can buy if openly sold.
Stop playing open and close. We are living in limbo mode not knowing where to go next and that causes stress. Keep it open or close it down. We are tired of hearing this and that. As workers have to hear the news everywhere except at work. Its our lives we have the right to know what is going on! Give a forward answer and stop playing with our lives.
Please please make an effort to save AMSA and keep the companies going. Stop promosing and giving false hope!! Stop playing games. How would you feel if you were in this situation?? Think of South Africa and the economy. Please can the goverment save AMSA
Signs of Newcastle, show that Newcastle citizens, businesses, face a bleak Easter 2025 in decade’s, while Newcastle citizens will only feel deadly effectives to late.
Arcelor Mittal want to operate from your tax, It’s stands to reason as of where is the SA government getting funds from except the working class. Arcelor Mittal claim to have 60 operating Plants in the World, BUT failed to save Two.
Closure of AMSA Newcastle wll affect not only AMSA’s workers bt also all the companies that rely on Amsa for some products, for example NPC in industrial area, where will they get the ashes tht thy use to make cement. Tht means also they’ll have to close down. For us truck drivers who loads at Accerlor Mittal we the same as Accerlor Mittal workes we will be jobless…
Knowing how corrupt most of these Corporations do business,with secret buyers,rumours about deals to import steel from outside SA,have been floating around in the media.
Where are the Watchdogs?
That’s straight forward we can’t survive with a short term strategy as this will hunt us the following years to come,in this instance the long term strategy is the only solution in this regard