The South African Communist Party (SACP) stated on Friday that aside from urgently stopping the closure of ArcelorMittal South Africa’s (AMSA’s) domestic steel mills and rail-fabrication plant, government must begin to explore public ownership options.

Earlier this month, AMSA announced that it would close its business making long-steel products, after months of consultations with government failed to stave off the threat to thousands of jobs.

Its immediate impact would directly affect 3 500 workers. In the medium- to long-term, the fallout could put an estimated 25 000 to 100 000 livelihoods at risk.

“The SACP will not stand idly by. We will mobilise our structures, workers and communities in Newcastle, Vereeniging, eMalahleni and beyond to take militant action against AMSA’s plans,” it said.

The Communist Party said stopping this from happening was not just an economic imperative but a matter of national security to ensure the survival of domestic steel production and supplies to various manufacturing sectors.

The SACP said government could reclaim a significant or a controlling stake in domestic productive capacity.  

It noted that such a transition must also embrace investment in low-carbon production technologies to secure a sustainable future for the industry.

The African National Congress’s alliance partner said the closure of domestic productive capacity would negatively impact the national imperative of industrialisation, including increasing domestic beneficiation of mineral resources and manufacturing employment.

The party said it supported intervention by the Minister of Trade, Industry and Competition Parks Tau aimed at halting AMSA’s plan to mothball its domestic steel mills, shut down production and retrench workers.

“AMSA’s closure of the South African steel mills would have devastating consequences for workers, communities and the broader economy. Preventing AMSA’s end-of-January 2025 planned shutdown of the long-steel mills in Newcastle and Vereeniging and the rail-fabrication plant in eMalahleni must be treated as a matter of national urgency,” said the SACP.

Further, the SACP said government must not abandon critical industrial policy instruments, such as the Preferential Price System and export tariffs on scrap metal, highlighting that these measures are essential to ensure that the scrap metal resource above the ground is transformed into value-added products, including reasonably priced long steel products.

“They have also facilitated the emergence of mini mills using electric arc technology, which can produce more affordable steel with a lower carbon footprint. These initiatives are crucial for building a more productively capable and diversified steelmaking industry,” it said.

The party wants decisive action to be taken against illegal scrap metals and trade, particularly the looting of public infrastructure and theft.