South Africa-based Assmang has announced that it is considering closing its Beeshoek iron ore mine after failing to reach a new supply agreement with ArcelorMittal South Africa. According to a notice sent to unions, the closure could result in the loss of 688 jobs.
Assmang stated that in June, ArcelorMittal informed the company it would not sign a new three-year contract, which came as an unexpected development. Since its only customer refused to commit to long-term purchases, the company said it had explored other options, including exports, but found them unsuitable.
ArcelorMittal South Africa did not respond to detailed questions on the matter, but in a brief statement described the situation as complex and said it was not in a position to disclose further details at this stage.
The Solidarity union at Beeshoek confirmed that the retrenchment process for all employees has begun. The union added that, given the mine’s dependence on a single customer, closure has now become a real possibility.
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