South African Government to Fund ArcelorMittal South Africa for Steel Sector Support
The South African government plans to fund ArcelorMittal South Africa with 500 million rand to support key steel mills and worker salaries. The funding will also allow for increased IDC ownership. This initiative is crucial for the country’s economic recovery, focusing on infrastructure and industrial sectors.
The South African government has announced its intention to provide financial support to ArcelorMittal South Africa Ltd., the local division of the global steel giant ArcelorMittal SA. This initiative aims to bolster key steel mills critical to the national economy, as reported by international media outlets.
The government plans to allocate 500 million rand (approximately $28 million) aimed at covering worker salaries for a duration of six to eight months. Additionally, it seeks to provide interim financing through the Industrial Development Corp. (IDC), which will subsequently increase its ownership stake in ArcelorMittal South Africa from the existing 8.2%.
Moreover, the South African government is eager to engage ArcelorMittal South Africa in proposals concerning two significant steel mills located in Vereeniging and Newcastle. Earlier in 2025, the IDC extended working capital to ArcelorMittal South Africa to sustain its operations during challenging times.
Securing a deal to keep the long products factories operational is vital for the government’s economic recovery strategy, which emphasizes large-scale infrastructure development. The automotive and mining sectors play a pivotal role as major sources of foreign exchange for South Africa.
ArcelorMittal S.A. is a globally recognized multinational steel firm based in Luxembourg and stands as the second-largest metallurgical enterprise worldwide with a 4% share in the global market. The corporation operates across 18 countries on four continents and distributes its products in 160 countries. ArcelorMittal South Africa functions as a subsidiary, with its headquarters situated in Johannesburg, South Africa.
In summary, the South African government’s funding initiative for ArcelorMittal South Africa, amounting to 500 million rand, aims to sustain national steel production and safeguard employment. This financial support may also pave the way for future investments in key steel mills and underscores the importance of the manufacturing sector in the country’s broader economic recovery plan.
Original Source: www.akm.ru
