The South African government is set to provide 500 million rand ($28 million) to ArcelorMittal South Africa Ltd. to sustain jobs at crucial steel mills. This funding will help cover salaries and enhance the IDC’s ownership stake in the firm, supporting the local economy and infrastructure development.
The government of South Africa has announced plans to extend financial support to ArcelorMittal South Africa Ltd., a subsidiary of the global steel giant ArcelorMittal S.A. This initiative is aimed at sustaining vital steel mills that significantly contribute to the nation’s economy. A funding commitment of 500 million rand (approximately $28 million) will be allocated to cover employee salaries for a period of six to eight months and facilitate further interim financing via the state-owned Industrial Development Corporation (IDC). This will also result in an increased stake in ArcelorMittal South Africa for the IDC, which currently holds 8.2%.
Furthermore, the government is keen to engage ArcelorMittal South Africa in discussions regarding two specific steel mills located in Vereeniging and Newcastle. As of early 2025, the IDC has already provided working capital to AMSA to ensure ongoing operations. Securing agreements that will keep the long products factories operational is essential for the government’s strategy to revitalize the economy through extensive infrastructure development, with the automotive and mining sectors being key contributors to foreign exchange in South Africa.
ArcelorMittal S.A., headquartered in Luxembourg, is recognized as the second largest metallurgical company in the world, commanding a 4% share of the global market. The company conducts operations across 18 countries spanning four continents and offers products in 160 countries. ArcelorMittal South Africa, as its local subsidiary, maintains its headquarters in Johannesburg, South Africa.
In summary, the South African government’s commitment to funding ArcelorMittal South Africa Ltd. with 500 million rand signifies a strategic effort to bolster the nation’s economy by ensuring the continuity of essential steel production. This partnership will enable the retention of jobs and facilitate infrastructure development critical to enhancing the economic landscape, particularly benefiting the automotive and mining industries.
Original Source: www.akm.ru
