Key Points
- ARM closed the Beeshoek mine after losing its only buyer, ArcelorMittal South Africa.
- The closure will cut 622 jobs by the end of November.
- ARM’s annual earnings fell 47 percent due to weaker iron ore and PGM prices.
The mine ended production at the close of October, and 622 permanent employees will lose their jobs by the end of November.
ARM said Beeshoek will be placed on care and maintenance after efforts to find a viable operating model failed. The mine’s only buyer, ArcelorMittal South Africa, ended its supply agreement in June and halted all purchases on July 27 after briefly buying month-to-month.
“In the absence of a sustainable offtake arrangement, Beeshoek Mine is no longer economically feasible to operate,” ARM stated.
Steel Sector Struggles Deepen
The shutdown reflects growing strain in South Africa’s steel industry. ArcelorMittal South Africa, the country’s largest steelmaker, has been battling weak domestic demand, high electricity costs, unreliable rail transport, and surging imports of cheaper Chinese steel.
Earlier this year, the company suspended plans to close its long steel plants in Newcastle and Vereeniging while it continued talks with the government and labor unions.
ARM confirmed that consultations under the Labour Relations Act had been completed and that the Department of Mineral and Petroleum Resources had been notified.
The company had earlier warned that Beeshoek’s future was uncertain after ArcelorMittal rejected a new three-year supply contract proposed in August.
Falling Earnings Pressure ARM
Founded in 1997, African Rainbow Minerals has become one of South Africa’s largest diversified miners, with operations spanning iron ore, manganese, copper, coal, gold, and platinum group metals. Iron ore and PGMs are vital to its earnings, but weaker commodity prices have dragged down profits.
For the year ending June 30, headline earnings dropped 47 percent to R2.7 billion ($155.5 million) from R5.1 billion ($293.7 million) the previous year.
In September, ARM also halted operations at its Bokoni platinum mine after reporting lower annual profits.
Motsepe Expands Beyond Mining
Motsepe, Africa’s first Black billionaire and the richest Black person in Southern Africa, owns about 46 percent of African Rainbow Minerals.
Although mining remains his core business, he has broadened his investments into financial services, renewable energy, and sports.
Through his broader portfolio, Motsepe has become a key figure in both South Africa’s business and philanthropic circles, with interests that extend well beyond mining.
