The South African government intends to allocate 500 million rand to ArcelorMittal South Africa to support operations vital to the economy. This funding aims to cover worker salaries and enhance IDC’s stake in the company. The government also aims to engage AMSA in developing two steel mills, critical for economic recovery and infrastructure projects.
The South African government is set to extend financial assistance to ArcelorMittal South Africa Ltd., a subsidiary of the global steel entity ArcelorMittal SA, in an effort to bolster crucial steel mills essential for the nation’s economy. Reports indicate the government will allocate 500 million rand (approximately $28 million) to underwrite worker salaries for six to eight months and will also provide further funding through the state-owned Industrial Development Corporation (IDC), thereby increasing IDC’s stake in ArcelorMittal South Africa from its current level of 8.2%.
The government seeks to garner ArcelorMittal South Africa’s interest in proposals for two steel mills located in Vereeniging and Newcastle, South Africa. Earlier in 2025, the IDC granted AMSA working capital aimed at sustaining operations during times of economic pressure. Maintaining the operation of long product factories is vital to the government’s ambitions of rejuvenating the economy through extensive infrastructure development. Furthermore, the automotive and mining sectors remain critical contributors to South Africa’s foreign exchange income.
ArcelorMittal SA, headquartered in Luxembourg, stands as the second-largest metallurgical firm globally, commanding a 4% share of the worldwide market. With operations spanning across 18 countries and a range of products sold in 160 nations, the corporation demonstrates significant international influence. ArcelorMittal South Africa, based in Johannesburg, functions as a key subsidiary within this global framework.
The South African government’s financial support for ArcelorMittal South Africa emphasizes its commitment to sustaining critical steel operations and stimulating economic development. By investing 500 million rand and facilitating proposals for additional steel mills, officials aim to enhance the country’s economic resilience and maintain pivotal industrial employment. The strategic support aligns with broader goals of infrastructure development and safeguarding foreign exchange earnings.
Original Source: www.akm.ru
