South Africa’s African Rainbow Minerals (ARM) has announced the temporary closure of its Beeshoek iron ore mine after ArcelorMittal South Africa, its sole customer, stopped buying ore.
The mine, jointly owned by ARM and Assore under their Assmang venture, ceased operations at the end of October, marking the end of a decades-long supply partnership. Around 622 permanent employees will be retrenched by November 30 as the site is placed under “care and maintenance.”
The decision follows the expiry of a long-term contract in June, after which ArcelorMittal bought ore on a month-to-month basis before halting purchases entirely in late July. Without the steelmaker’s offtake, Beeshoek’s ageing infrastructure and high operating costs became unsustainable.
An internal review found no viable path to continue production. “In the absence of a sustainable offtake arrangement, Beeshoek Mine is no longer economically feasible to operate,” ARM said in a statement.
Consultations with trade unions have concluded, and the Department of Mineral and Petroleum Resources has been informed of the shutdown.
The move confirms earlier warnings issued in August, when management cautioned that the mine’s future was uncertain following ArcelorMittal’s refusal to sign a new three-year contract.
ArcelorMittal South Africa, the nation’s largest steel producer, faces mounting pressures from weak local demand, rising energy costs, logistical bottlenecks, and cheaper Chinese imports.
The steelmaker recently postponed the closure of its long steel operations in Newcastle and Vereeniging amid ongoing talks with the government and labour unions over the industry’s future.
The Beeshoek shutdown marks another setback for South Africa’s steel and mining sectors, both struggling under the weight of economic headwinds and structural inefficiencies.
