Assmang to place Beeshoek Mine under care and maintenance, 622 jobs affected

Assmang has announced it will place its Beeshoek Iron Ore Mine near Postmasburg in the Northern Cape under care and maintenance at the end of November, following the completion of a Section 189 consultation process in terms of the Labour Relations Act.

The plaing of the mine under care and maintenance, as well as the retrenchment of workers, comes despite the National Union of Mineworkers (NUM) having expressed strong opposition and its readiness to engage in consultations to explore alternatives.

The decision, which comes after extensive consultations facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA) and involving representative trade unions, will result in the retrenchment of all affected employees, numbering approximately 622 permanent workers, effective 30 November 2025.

Assmang, a joint venture between African Rainbow Minerals (ARM) and Assore South Africa, cited declining offtake, ageing infrastructure, and high operating costs as key factors behind the move.

The mine has faced mounting challenges since the expiry of its long-term supply contract with ArcelorMittal South Africa (Amsa) on 30 June 2024. Over the past three financial years, Beeshoek has recognized impairment losses totalling R3.6bn on all its assets as the mine is no longer economically viable.

In an effort to navigate the evolving landscape, the Beeshoek management devised numerous strategies aiming to improve sustainability, including a proposal to remove high stripping pits to minimise waste and significantly reduce operational costs.

But the failure to finalise the contract has drastically undermined the mine’s operational viability. Without a steady influx of revenue, Beeshoek incurs an average monthly expense of R72 million, leading to annual losses of R2.6 billion per annum for Amsa.

Moreover, the escalation of input costs—ranging from a 60% rise in diesel prices to a 65% increase in bulk explosives—has created significant financial pressure.

The mine is unable to replace ageing machinery or invest in necessary capital for maintenance without the assurance of a long-term contract, further complicating the path to recovery.

Assmang's plans for recovery hinged significantly on securing a three-year contract with Amsa for a minimum of 2.2 million metric tons of iron ore per year, but the failure to finalise this contract has left the mine's viability hanging by a thread.

Amsa, Beeshoek’s sole customer, continued purchasing iron ore on a month-to-month basis until final deliveries were completed on 27 July 2025. No further sales are expected for the remainder of the year.

“The inability to secure a long-term supply agreement, coupled with escalating maintenance and repair costs for ageing equipment, has rendered continued operations unsustainable,” Assmang said in a statement.

“Despite various strategic and operational interventions to address these challenges, the outcomes have not been sufficient to ensure the mine’s long-term sustainability.”

Assmang has committed to managing the transition process “with fairness, dignity and full compliance with all applicable laws.”

To support employees through the transition, the company has partnered with Siyakha Consulting to provide a range of services, including wellness and financial planning programmes, CV writing assistance, employment-seeking opportunities, reskilling initiatives, and entrepreneurship training.

Assmang expressed gratitude to Beeshoek Mine employees for their years of service and dedication, noting that engagement with unions and other stakeholders will continue to minimise the impact of the closure.

Founded as one of South Africa’s long-standing iron ore operations, Beeshoek Mine has played a critical role in regional employment and the local economy. Its shift to care and maintenance marks the end of an era for the operation, as Assmang focuses on ensuring responsible management of its remaining assets.

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