Analysis: Hopes for greener steel face reality of South Africa’s deindustrialisation
The decline of steel, manganese and chrome works share a backdrop that any green industry ambitions must confront, but there may be opportunities upstream, writes researcher Tristen Taylor The post Analysis: Hopes for greener steel face reality of South Africa’s deindustrialisation appeared first on Dialogue Earth .
In July 2023, South Africa's last remaining manganese smelter, Transalloys, abruptly ceased operations, leaving 600 workers facing potential layoffs and 7,000 others at risk of unemployment in the municipality of eMalahleni. Despite South Africa's significant advantage in manganese, chromite, and iron ore reserves, which constitute 70% of the world's resources, the country's steel industry has been in decline since 2008.
ArcelorMittal South Africa (AMSA) closed its Newcastle and Vereeniging steelworks in 2025, marking the end of a century of steel production in the country. The closures are attributed to expensive electricity prices, high rail fees, and the privatization of iron mines. South Africa's manufacturing sector has experienced a "structural break" since 2008, resulting in the loss of over 100,000 manufacturing jobs in the past two years alone.
The unemployment rate in the country is now 43.7%, with the youth unemployment rate at an alarming 60.9%. These factors have contributed to a declining economy and widespread unemployment, potentially leading to political instability in the country. Despite South Africa's potential for green steel production, the challenges of high electricity prices, inadequate infrastructure, and the privatization of iron mines have hindered progress in the sector.
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