Arcelormittal Sa Seeks R3.1bn Rescue Package For Mills, Sunday Times Says

ArcelorMittal South Africa is seeking a R3.1 billion rescue package to stave off the closure of crucial steel mills in the country, the Sunday Times reported .

The funds from Industrial Development Corporation IDC, a national finance institution that has a 6.4 stake in the company, would prevent the full idling of its long-steel plants slated for the second quarter, staving off the loss of about 3 500 direct and indirect jobs, the newspaper reported, citing people it didn't identify.

The company known as AMSA initially planned to shutter the Vereeniging and Newcastle facilities at the end of January, and later postponed this by a month to fulfill orders. Rescue talks with the government have failed to yield results and the operating environment has deteriorated amid high power and transportation costs and cheaper imports.

AMSA wants antitrust laws relaxed to enable it to merge with smaller mills and lower electricity prices from state-owned utility Eskom , the newspaper reported, citing the people.

The steel producer isnt in a position to communicate further on the matter, spokesperson Tami Didiza said in an emailed response to questions.