Beeshoek Iron Ore Mine to Close Following Collapse of Contract with ArcelorMittal

SEATTLE (Scrap Monster): The Beeshoek iron ore mine in South Africa, owned by Assmang, is reportedly facing closure, as it has failed to secure supply contract from its sole customer, ArcelorMittal South Africa.

The miner claims that the faltering steelmaker stated in June of this year that it would not enter into a three-year agreement with Beeshoek. It has previously indicated that it was willing to sign the contract. According to the union's warning, it now wants to talk to the unions about the mine's possible closure.

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According to Beeshoek, its sole notable client has been ArcelorMittal South Africa. Following its refusal to sign a long-term supply agreement, the miner had looked at a number of options, including exporting, but none of them were deemed feasible.

ArcelorMittal South Africa, meanwhile, chose not to comment on the news.

It should be mentioned that during the first half of 2025, the steelmaker posted a massive loss of $56.75 million. A number of issues have negatively affected it, such as declining domestic demand, rising electricity prices, and heightened competition from lower-priced Chinese imports. As a result, it intends to shut down its long steel facilities in Newcastle and Vereeniging that are losing money.

African Rainbow Minerals and foreign miner Assore have partnered to become Assmang.