South Africa's Assmang may shut down its Beeshoek iron ore mine after its sole customer, ArcelorMittal South Africa, declined to renew a supply contract.

This potential closure threatens 688 jobs, according to a notice to labor unions. The decision follows the steelmaker's unexpected refusal to sign a new long-term deal, despite earlier commitments. Assmang stated that alternatives like exports were explored but proved unviable.

The situation highlights the severe challenges in South Africa's steel industry, where ArcelorMittal South Africa is grappling with steep financial losses due to weak demand, high power costs, and fierce competition.