Noluthando Gosa-linked ArcelorMittal South Africa defers shutdown amid $91.6 million IDC facility

Key Points

• 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 Business’s 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 Africa’s state-owned Industrial Development Corporation (IDC), aimed at sustaining operations while long-term solutions are explored. 

IDC’s role in ArcelorMittal’s survival strategy

The IDC facility, repayable under terms tied to the Long Steel Business’s 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.

Government and industry support critical for stability

IDC’s 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.

Despite these efforts, ArcelorMittal SA remains cautious, warning shareholders to exercise prudence. Further announcements are expected as the company assesses its financial position and evolving market conditions.

Noluthando Gosa’s influence and the future of long steel

Noluthando Gosa, a non-executive independent director and 6.15 percent shareholder in ArcelorMittal SA, has been instrumental in shaping the company’s restructuring strategy, and balancing financial constraints with long-term sustainability. In October 2024, the company rejected a $1 billion acquisition offer from Networth Investments, reaffirming its commitment to an independent turnaround despite mounting losses.

The Long Steel Business remains a significant burden, with operational losses doubling to R1.1 billion ($58.87 million) in 2024 from R600 million ($32.1 million) in 2023. ArcelorMittal SA’s overall headline loss widened to R5.1 billion ($272.95 million), up from R1.89 billion ($101.15 million) the previous year, underscoring its deepening financial distress.

With an annual production capacity of seven million tonnes, ArcelorMittal SA is a key supplier to South Africa’s construction, automotive, and manufacturing industries. While the future of the Long Steel Business remains uncertain, the six-month deferral grants the company a critical window to stabilize operations and work toward profitability.