As uncertainty grips Newcastle with ArcelorMittal South Africa (AMSA) winding down operations in the town, the Newcastle Municipality has stated that it is working urgently to protect the local economy and minimise the fallout.
According to the entity, efforts are already under way to counter the negative impact of AMSA’s decision while simultaneously advancing development initiatives aimed at strengthening the community and preserving economic stability.
Speaking about the town’s future, Newcastle Municipality’s chairperson for Town Planning and Development, Councillor Bertie Meiring, acknowledged that AMSA’s closure would send shockwaves through both the local and regional economy.
He cautioned that the manufacturing sector, in particular, will face significant setbacks. “The Municipality will have people who were breadwinners suddenly unable to afford their financial commitments including payment of rates and services,” explained Cllr Meiring.
Nevertheless, he emphasised that there is an opportunity to turn this period of uncertainty into a catalyst for change, provided the right measures are taken.
That opportunity, he explained, is tied to the increase in mining activities gaining momentum across the region, driven by the rising demand for coal. “The establishment and expansion of these activities, while their longevity is limited, will afford the Newcastle Municipality enough time to diversify its manufacturing sector, as well as other sectors of the economy that can employ masses of skilled labourers we have in the town,” he said, suggesting that this short-term boost could allow Newcastle to reimagine its economic future and build greater resilience.
As reported by Newcastillian News, the Newcastle Municipality has also moved to address parallel concerns arising from the surge of mining interest.
With over 33 mining companies vying for prospecting rights, the Municipality is establishing a specialised committee made up of legal, technical, and other sector experts to scrutinise mining proposals and ensure that companies comply with environmental and infrastructure obligations.
This approach reflects the Municipality’s intention to strike a careful balance between economic opportunity and community well-being.
While highlighting mining activity as a potential driver of growth, Cllr Meiring acknowledged that these interventions will not immediately offset the economic shocks Newcastle is set to face in the short term. However, he stressed that the Municipality cannot relent in creating an enabling environment where investors see Newcastle as a place with significant economic potential.
Adding to this, Cllr Meiring noted that it was encouraging to see Eskom accelerating its efforts to diversify the country’s energy mix and open opportunities for new Independent Power Producers to generate and distribute power through the grid, ultimately helping stabilise electricity supply. Expanding on this, he revealed that one of these Independent Power Producers is preparing to establish operations in Newcastle within the coming months.
The Mulilo development, valued at approximately R8 billion, will see the company set up operations in Newcastle, pumping electricity into the Eskom grid via a connection at its plant, expected to be located near Ncandu Park. This refers to the Mulilo Newcastle Wind Power project, a 200 MW wind energy facility featuring up to 37 wind turbines with a maximum hub height of 140 meters and a rotor diameter of up to 200 meters, situated approximately 15 km northwest of Newcastle on private farmland in the Ncandu area, which was reported on by Newcastillian News in July 2025.
“The company has completed its technical compliance with Municipal regulations and expected to commence with construction in January 2026,” explained Cllr Meiring, signalling a major investment that could significantly benefit the town’s economic outlook.
Moreover, Cllr Meirign noted that several more interventions are being considered by the Municipality to diversify the sectors of the economy. However, he explained the Municipality cannot invest on its own plans, there has to be market uptake which can bring these into fruition.
According to Cllr Meiring, these interventions include the following listed in no order of priority:
- Development of Ncandu hydro park as a tourism project designed to capture the Northern KZN region.
- Development of Ntshingayo dam in liaison with Ezemvelo Wild Life& Water Affairs.
- Repurposing of commercial development in the CBD to include housing component, and creating a 24 hour city, this will augment the housing shortage for the Amajuba TVET Collage
- Development of storage and transport facilities within the Riverside Industrial Area.
- The approval of the incentive scheme to partially subsidise sectors of the economy, which must be promoted for economic growth.
Furthermore, the Municipality is also progressing with the development of the multi-campus university and is currently awaiting Unisa to complete its responsibilities.
Simultaneously, attention is being directed to the Newcastle Airport, where final planning and additions to the facility are now under way.
While time frames still need to be developed, Newcastle’s ongoing initiatives signal a clear intent to stabilise the local economy and create a more adaptable framework for growth. The combination of energy projects, strategic sector interventions, and infrastructure planning indicates that the town is seeking to establish conditions under which investment and employment opportunities can take root, even amid the uncertainty created by AMSA’s operational changes.
At the same time, the focus on measured oversight, such as regulatory compliance in mining and the phased development of major projects, reflects an approach that balances economic expansion with practical risk management. If these efforts proceed effectively, Newcastle could gradually build a more resilient economic environment capable of supporting sustained activity, enhancing the town’s ability to respond to future challenges while providing stability for its residents.
What are your thoughts on this, let us know below.
Be sure to read, US Senate Introduces Second Bill to Sanction ANC and Review South Africa Relations, if you missed it.
16 Responses
Election time is coming up. Now it is just promises. Which company will set up operations is the industrial area with the condition of those roads. The municipal staff and councilors have not got the knowledge, expertise or knowhow to attract industries.
Firstly these efforts should be welcomed with both hands . Although I have my own opinion with regards to liquidation of the company , we simple have to force national government to take over this company.
I agree with you Andte. The Municipality does not know how to execute their plans. They are still having issues with the Osizweni and Madadeni Water shedding. We also need IDC (Industrial Development Cooperation) to take over AMSA and get a new CEO to turn things around who would be coming from the private sector.
This is such promising news for Newcastle i cant wait to see Newcastle grow to a wonderful city i see very positive changes taking place all those who will be retrenched keep up to date with these developments and get your CV s asap goodluck everyone
Absolute rubbish from the local leaders….
33 mining licenses… welcome to witbank 2.0 , has anyone driven to Richard’s Bay lately???
Sick of these people lying in regards to job creation… how many qualified miners are do you think we have?
This is a money grab because they want have the bucks anymore from mital….
Watch out newcastle, you think things are bad now… wait until roads are stuffed. Air is black with poison and everything is degraded.
Be positive if everyone has your attitude we will end in a ghost town
I agree with you Corrine. We must be positive and hopefully the Mining licences will be approved so that more people can be employed locally and the companies must sign an agreement to hire local FIRST before going externally. There must be an agreement to hire 65% Newcastle residents.
Pie in the sky rubbish, those mines won’t even employ a 1/4 of what AMSA did, also they will destroy the environment and health of the residents
It is hart warming to read all the good that is planned for the town, especially the wind farm and solar power. I use to live in Newcastle for many year currently live in Grootbrakrivier/ Goerge area and would love to returto my hometown but hesitate because of all happening at Mittal. This made me very positive. I really pray all of this is happening and that the town can be the wonderful pulsing economy it was a few year back. In my new environment lost gets done with solar power and it’s something the municipality really must consider. Expensive to install but cost effective on the long run. Thumbs up for Councilor Bertie Meiring and the Newcastle Municipality.
We have many coal mines around NN . What are they doing to boost local economy and employment and what is the Municipality getting from these mines . We shouldn’t be crying about Arceiclosing when we have so many mines that can provide such needed employment. We have many Newcastle’s around the world , what is the Municipality doing to take advantage of the name to secure investment for our town ? I think the Municipality needs to sit down and see the Newcastle that can add help our town . I so wish the Municipality can ond day have public meeting in town , Madadeni and Osizweni regarding this move.
Newcastle will turn into ghost town in no time , municipality must stop sell our lands for foreign companies such as mining they came up here with no development and employment only to loot minerals gwede mantashe with his friends stop doing this ,this should build clinic , schools , training centre for your than loot minerals but they do nothing infect even kwezi mining did they follow rules no people house are tracking and the earn peanut so please stop this nonsense.
Empty promises that’s all they give the Newcastle prople
Who in his/her right state of mind will politicians currently. This is nothing but electioneering, what does a mere Councillor knows about business development and means of complex economic growth.
Well, I meant in the current world of madness in our body politics who in his right state of mind will believe politicians. What that man is saying is just mere political point scoring. I would have believed if he is saying there is currently an investor on site currently doing the due diligence and he has committed to take over the Arcellor Mittal infrastructure for his new project, not those whafflings from that Councillor. In my understanding Cllrs knows nothing about intricacies of economic complexities.
I think we have to stop criticism and try to use what we have to get what we don’t have…
I don’t see the mining sector reviving the economy of Newcastle. These companies do not benefit the residents, they only cause destruction to the environment. Look at Moyeni/ Mbabane area people’s homes are falling/ cracking,grazing land is lost not to mention the destruction of the roads Blaauwbosch road in particular