Noluthando Gosa-linked Arcelormittal South Africa Defers Shutdown Amid 91.6 Million Idc Facility

ArcelorMittal SA postponed its Long Steel shutdown until August 31, 2025, after securing a 91.6 million IDC facility to extend operations.

The IDC facility, tied to the Long Steel Businesss performance, aims to stabilize operations while eyeing government-backed reforms and tariff measures.

ArcelorMittal SA, facing mounting losses, rejected a 1 billion acquisition bid in 2024, reaffirming its commitment to independent restructuring.

ArcelorMittal South Africa ArcelorMittal SA, a Gauteng-based steelmaker linked to prominent businesswoman Noluthando Gosa has postponed the planned shutdown of its Long Steel Business for six months. The decision extends operations until at least Aug. 31, 2025, providing a temporary reprieve as the company navigates severe financial pressures.

The delay follows a critical R1.68 billion 91.6 million funding package from South Africas state-owned Industrial Development Corporation IDC, aimed at sustaining operations while long-term solutions are explored.

The IDC facility , repayable under terms tied to the Long Steel Businesss financial performance, is intended to keep the division afloat while discussions on its viability continue. As part of the agreement, ArcelorMittal SA has committed to preserving approximately 3,500 direct and indirect jobs throughout the deferral period.

Additionally, the company has secured Temporary Employee Relief Scheme TERS funding to offset employee costs, reducing its reliance on the IDC facility.

IDCs intervention, alongside government engagement, is crucial in stabilizing the struggling steelmaker. Discussions are ongoing regarding regulatory and policy reforms, including a review of the Preferential Pricing System PPS for scrap metal and potential tariff measures to support domestic steel producers.