A major iron ore mine in South Africa now faces shutdown because ArcelorMittal South Africa stopped buying its ore, putting hundreds of jobs in danger and exposing the deep weaknesses in the country’s mining sector.
ArcelorMittal reduced its orders for months as construction activity weakened and production costs climbed. The mine’s operator warned that it will stop production before year-end if it fails to secure new customers, raising fears for workers and nearby communities.
Industry analysts say several long-standing problems fuel the crisis. Rail delays, unreliable electricity, and falling global steel prices continue to squeeze South African producers. The mine had supplied ArcelorMittal’s Vanderbijlpark plant, one of Africa’s biggest steel factories, making the loss of its main buyer especially damaging.
The Department of Mineral Resources and Energy has begun talks with unions, the company, and local leaders to reduce the impact. A spokesperson said the ministry aims to help workers and communities manage the transition and avoid wider social harm.
Experts argue that the looming closure exposes structural weaknesses across the mining and manufacturing value chain. Even as the government works to attract investment and revive industrial growth, poor infrastructure, rising costs, and weak demand continue to hold the sector back.