ArcelorMittal South Africa (AMSA) and the Industrial Development Corporation of South Africa (IDC) have restarted discussions on a potential transaction involving AMSA’s steel assets after talks stalled last year. 

The negotiations are based on a non-binding term sheet and aim to establish a sustainable framework for the future of the company’s domestic operations. 

Previous talks collapsed in November last year after ArcelorMittal rejected an informal offer of around ZAR 8.5 billion. 

Discussions between AMSA, the IDC, and the South African government originally began in November 2023 following plans to shut two steel mills supplying the automotive and mining sectors. 

The IDC, which holds an approximately 8% stake in AMSA, had provided financial support to delay closures while strategic options were assessed.