Assmang closes Beeshoek iron ore mine after termination of contract with AMSA

South African mining company Assmang, a joint venture between African Rainbow Minerals and Assore, has announced that it is considering closing the Beeshoek iron ore mine. The move followed the unexpected withdrawal of ArcelorMittal South Africa (AMSA) from a long-term supply contract, raising concerns about job losses and the financial sustainability of the mine. The closure of Beeshoek will not only affect hundreds of employees, but also disrupt the iron ore supply chain in South Africa.

Production decline

The Bishuk mine, once capable of producing 6.2 million tons annually, has already been reduced to 2.2 million tons in recent years. The reduction was largely due to reduced shipments from AMSA, its only significant customer.

AMSA factor

• At the end of June 2025, AMSA unexpectedly refused to sign a three-year contract, despite earlier commitments.
• Deliveries to AMSA stopped on July 27, 2025, after credit guarantee insurance was suspended due to unpaid bills.
• The resumption of sales depends on the settlement of overdue payments and the restoration of insurance coverage.

Job loss risks and consultation process

Assmang has begun formal discussions with the unions. Although no final decision has been made, the company stressed that closure remains a serious possibility unless viable alternatives are found to ensure the safety of operations.

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