Organised business in the Vaal and Emfuleni has appealed to both the SA Government and ArcelorMittal SA itself to clarify reported talks and growing rescue speculation on the steel giant’s recent announcement to close its long steel plants in Vereeniging and Newcastle.

The announcement of the long steel plants closure sparked anger and concern throughout South Africa’s steel industry, especially within the affected towns and communities of Vereeniging and Newcastle – where the steel giant’s long steel plants are situated.

Jaco Verwey, President of the Golden Triangle Chamber of Commerce (GTCoC) said the situation around talks and possible Government action to prevent the closures – and the loss of about 3 500 jobs – needs to be clarified by both Government and ArcelorMittal.

This follows rounds of frantic SA Government meetings in south Africa with stakeholders in the SA steel industry and even a recent meeting between President Cyril Ramaphosa and ArcelorMittal SA owner Lakshmi Mittal in Europe.

The SA Government has also announced a review of its present steel tariffs through the International Trade Administration of South Africa (Itac), including observation of the industry upstream, midstream and downstream imports of steel products.

This was in response to pressure by ArcelorMittal SA on the SA Government to investigate its tariffs.

Over past years, the SA Government has followed a cumbersome and expensive administrative route based on applications and large product-by product payment by steel industry stakeholders for tariff increases instead of a political solution to the problem of cheap Chinese steel imports.

Nothing firm by way of a rescue package has yet been announced by the South African Government  following emergency and hasty talks involving South African President Cyril Ramaphosa and ArcelorMittal SA owner Lakshmi Mittal in Europe recently.

ArcelorMittal SA has also said it has nothing to add to its public statements already made on the plant closures.