This is the first formal recognition of rescue packages being negotiated while the African steel giant winds down its long steel business.

The company remains tight-lipped on media speculation and talks on yet another multi-billion Rand rescue package is in the offing to prevent the disastrous closure of its long steel business in Vereeniging and Newcastle.

Although the company has already begun the winding down of its long-steel plants – with 3 500 permanent and contractor job losses expected – there is speculation that talks are under way on a R3.1 billion rescue deal with the Industrial Development Corporation (IDC).

However, the shuttering process continues and has not been stopped but was being handled in such a way to accommodate a rescue package – should a credible package emerge, the company said this week.

ArcelorMittal has already delayed shutting down its long-steel plants twice on the basis of direct talks with Government on rescue packages – which came to naught.

However, the Department of Trade and industry is still reportedly looking at ways to retain the production capacity to make long steel products even should ArcelorMittal bow out for good on its own plants.

The IDC is a national finance institution which itself has a 6.4% ownership stake in ArcelorMittal SA.

The long-steel closures have been squarely blamed on the SA Government’s lack of policy clarity or action on the steel industry and its failure to introduce tariffs against especially cheap Chinese imported steel flooding South Africa.

High power costs from Eskom and a chaotic national transport environment – specifically railways and ports – are also cited as  major reasons contributing to the shuttering of ArcelorMittal’s long-steel plants.