Assmang\u2019s Beeshoek mine in the Northern Cape is set to be closed due to problems facing its only client, Arcelormittal South Africa (AMSA), with hundreds of jobs on the line. <\/p>\n\n\n\n
Assmany is jointly owned by Patrice Motsepe-founded African Rainbow Minerals Limited and Assore South Africa Proprietary Limited. Beeshoek is the oldest of Assmang’s iron ore mining operations. <\/p>\n\n\n\n
The mine dates back to 1928 as a Manganese Mine, with the first Iron Ore mined in 1964. <\/p>\n\n\n\n
The plant has produced at a maximum capacity of 6.2Mtpa, but over years, planned production was reduced and the operation was budgeted to produce at 2.2Mtpa for the remaining life of the mine.<\/p>\n\n\n\n
Over recent years, production volumes dropped significantly due to a reduction in offtake from AMSA, which looks set to close its Long Steel operations in South Africa. <\/p>\n\n\n\n
Beeshoek operated on a month-to-month agreement with AMSA last year as it could not commit to a three-year contract at the time, placing the mine\u2019s future stability at risk.<\/p>\n\n\n\n
In January 2025, AMSA announced its intention to start winding down its Long Steel Business and indicated the possibility of buying 1.4 million tons of ore per year instead of the 2.2 million tons from Beeshoek.<\/p>\n\n\n\n
In late June 2025, AMSA confirmed it would sign a three-year contract at Beeshoek, and all deliveries to AMSA ended in late July 2025 after credit guarantee insurance was suspended. <\/p>\n\n\n\n
“Due to the reduced offtake by AMSA and the related uncertainties over the last two years, the mine was not in a position to replace machinery and equipment,\u201d it said.<\/p>\n\n\n\n
\u201cAs a result, expenditure on major repairs will be required to sustain operations, and this is not justifiable in the absence of a long-term contract.\u201d <\/p>\n\n\n\n
The mine cannot responsibly fill critical vacant positions to ensure sustainable and safe operations without a long-term contract. <\/p>\n\n\n\n
The mine is also ageing, and operational expenditure will be required to complete significant maintenance work in the plant. <\/p>\n\n\n\n
The mine cannot commit to this expenditure without a long-term contract, it said.<\/p>\n\n\n\n
Beeshoek Mine’s fixed cost every month amounts to R72 million, and without any revenue, this results in a significant financial loss to Assmang amounting to R2.6 billion per annum.<\/p>\n\n\n\n
With this, Beeshoek proposes to discuss with the unions the potential closure of the operation.\u00a0<\/p>\n\n\n\n
\u201cWe emphasise that no final decision in this regard has been made, and the consultation process is intended to explore any possible viable alternatives to try to save jobs,\u201d the group said.\u00a0<\/p>\n\n\n\n
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