The increased power generation by Eskom (there have been no blackouts for about three months) and improved rail volumes by Transnet have given ArcelorMittal breathing room to improve its operational efficiencies.

Listen to this article 7 min Listen to this article 7 min ArcelorMittal South Africa will no longer shut down its steel-making operations in Newcastle and Vereeniging, saying its U-turn was largely informed by early improvements in the country's electricity and logistics situation.

The decision not to mothball ArcelorMittal's long-steel operations means that the company is likely to preserve 3,500 jobs and thousands of indirect jobs that are in the steel consumption value chain.

ArcelorMittal's operations in Newcastle and Vereeniging produce long-steel products such as fencing material, rods and bars that are used in the construction, mining and manufacturing sectors.

In November 2023, the company announced it would shut down its steel operations that were performing at a loss due to Eskom blackouts, Transnent's inability to rail goods to market, and the government's policy blunders in not protecting the local steel industry. ArcelorMittal also blamed lower demand for steel products owing to a weak domestic and global economy.

ArcelorMittal rail and structural operations in Mpumalanga, which rely on intermediate steel products currently produced at Newcastle, were also at risk of closure.

In a briefing with journalists on Tuesday 2 July, the CEO of ArcelorMittal South Africa, Kobus Verster, said the...