With the 30 September deadline for winding down the long steel business looming and R1bn in headline losses bleeding from ArcelorMittal South Africa's balance sheet, CEO Kobus Verster is running out of patience with what he calls 'misguided policies' that have crippled the local steel industry.

Speaking after the release of devastating interim results that showed a loss of R394-million despite a cash injection from the Industrial Development Corporation, Verster delivered a blunt message to the government: fix the structural problems strangling steel production or watch South Africa's last integrated steelmaker cannibalise itself to survive.

"If that's not on the cards and we can't get agreement on that, then I have to find an alternative to basically recapitalise the business from within," Verster told Daily Maverick, outlining plans to sell off valuable assets including Saldanha Steel, which he described as being "in very good condition" with potential for green direct reduced iron production.

"Saldanha Steel is a valuable asset. We had intent for it in terms of green DRI (direct reduced iron). The assets are in a very good condition, but I can't wait five or six or seven years. Maybe there's a partnership or another party that can give...