Assmang's Beeshoek Mine faces uncertain future as employment hangs in the balance

AS SOUTH African steelmaker Arcelormittal (AMSA) vacillates on a crucial three-year contract, Assmang's Beeshoek Iron Ore Mine in the Northern Cape has found itself in dire straits, reflecting broader challenges within the mining sector.

- BANELE GININDZA

With a staggering R3.6 billion impairment loss annually and ongoing production declines, the mine is exploring drastic corrective measures, including the potential retrenchment of over 700 jobs.

This comes as Assmang, the operator of Beeshoek Mine, has issued a notice of retrenchment to its employees and is conducting a consultation process with labour on the possibility of saving the threatened 700 plus jobs.

In a notice on the retrenchment, Assmang notified its stakeholders that an approved recovery plan hinging on AMSA committing to a three-year deal to off take at least 2.2 million metric tons per year was scuppered at the final moments.

"In late June 2025, in an unexpected turn of events AMSA confirmed that they would not sign a three-year contract with Beeshoek. Prior to this, they did not give any indication that they were not willing to sign a three-year contract with Beeshoe," Assmang said.

"If anything, AMSA had reinforced its intention to enter onto a three-year contract prior to this. This is a disappointing turn of events, one over which the company does not have any control. Moving forward, Beeshoek intends to discuss with unions the potential closure of Beeshoek."