<div id="readability-page-1"><div><div><div>Key points:<ul><li>Troubled steelmaker is Beeshoek mine's sole customer</li><li>Alternatives, including exports, deemed unviable</li><li>Nearly 700 workers could lose jobs</li><li>ArcelorMittal planning to close two long steel plants</li></ul></div> South Africa's Assmang is weighing the closure of its Beeshoek iron ore mine after failing to secure a contract to supply its sole customer, the ailing steel producer ArcelorMittal South Africa .The closure of the mine could result in the loss of 688 jobs, Assmang - a joint venture between African Rainbow Minerals and international miner Assore - said in a notice to unions seen by Reuters on Tuesday.ArcelorMittal South Africa had, in what Assmang called &#34;an unexpected turn of events&#34;, confirmed in June that it would not sign a three-year contract with Beeshoek despite earlier indications that it would do so, the miner said.&#34;Moving forward, Beeshoek proposes to discuss with the unions the potential closure of Beeshoek,&#34; Assmang said in the notice.&#34;The mine has only one significant customer, ArcelorMittal South Africa. The customer is not willing and has declined concluding any long-term contract with Beeshoek mine,&#34; it said, adding that several alternatives, including exports, had been considered but ultimately deemed unviable.ArcelorMittal South Africa declined to comment on the matter.&#34;Given the complexity of the matters under discussion and our cautionary announcements, we are limited in what can be discussed in the public domain at this stage,&#34; a company spokesperson told Reuters in an emailed response. The steelmaker reported a 1 billion rand ($56.75 million) loss in the six months to June 30. It is facing weak local demand, high electricity tariffs, and poor freight logistics as well as competition from Chinese imports and local scrap metal recycling mini-mills. ArcelorMittal South Africa plans to close its loss-making long steel plants in Newcastle, which is now under care and maintenance, and Vereeniging. It has deferred the closures for two years as it engages with the government, labour representatives and utilities companies but has said those talks have, so far, not produced a solution.Trade union Solidarity, one of the three recognised unions at Beeshoek, said Assmang had initiated the process to lay off the entire staff at the mine.&#34;Due to the fact that they do not export, and since their only client can no longer buy from them, the worst possible option is now being considered,&#34; Adele Rossouw, Solidarity's organiser for the mining sector, said in a statement.($1 = 17.6209 rand)</div></div></div>

Assmang is considering closing its Beeshoek iron ore mine in South Africa due to the inability to secure a contract with its sole customer, ArcelorMittal South Africa, which is facing financial difficulties. The closure could lead to the loss of 688 jobs. Alternatives, including exports, have been deemed unviable. ArcelorMittal reported a significant loss and is planning to close two long steel plants, citing weak demand and high operational costs. Trade union Solidarity has indicated that layoffs are being initiated due to the situation.

S.African iron ore mine faces closure as ArcelorMittal crisis weighs