The South African government plans to invest 500 million rand in ArcelorMittal South Africa to support key steel mills, including funding for worker salaries and interim financing. This investment aims to sustain operations and boost the local economy through infrastructure projects while increasing the IDC’s stake in the company and exploring new steel mill proposals.
The South African government is set to provide 500 million rand (approximately $28 million) in funding to ArcelorMittal South Africa Ltd., aimed at sustaining key steel mills vital for the nation’s economic stability. This financial assistance will cover workers’ salaries for a duration of six to eight months and entail additional interim financing from the state-owned Industrial Development Corporation (IDC). Furthermore, the IDC intends to increase its stake in ArcelorMittal South Africa beyond the current 8.2% stake.
In its efforts to bolster the local steel industry, the government also anticipates that ArcelorMittal South Africa will show interest in developing proposals for two new steel mills located in Vereeniging and Newcastle. Earlier in 2025, the IDC provided working capital to maintain ongoing operations at ArcelorMittal South Africa. The successful conclusion of this agreement is pivotal for the government’s economic strategies which focus on substantial infrastructure development.
The government aims to rejuvenate the economy with this plan, which also highlights the relevance of the automotive and mining sectors as significant contributors to South Africa’s foreign exchange earnings. ArcelorMittal S.A., a global leader in metallurgical production, ranks as the second largest such corporation worldwide, controlling approximately 4% of the market share.
Operating across 18 countries and marketing products in 160 nations, ArcelorMittal South Africa is a subsidiary of the Luxembourg-based multinational. The local headquarters resides in Johannesburg, further solidifying its pivotal role in the regional economy.
The South African government’s financial support for ArcelorMittal South Africa is a strategic initiative intended to maintain essential steel production while fostering economic recovery through infrastructure development. By investing in the local steel industry and increasing its stake in ArcelorMittal, the government aims to secure jobs and sustain critical operations to enhance the country’s economic resilience.
Original Source: www.akm.ru
