Friday 7 November 2025:- The South African Communist Party (SACP) in the Northern Cape Province strongly condemns and rejects the decision by Assmang Limited to place its Beeshoek Iron Ore Mine in Postmasburg under care and maintenance and to retrench 622 permanent workers with effect from 30 November 2025.

This decision represents a devastating blow to the working class, local communities, and the regional economy of the Northern Cape, which already faces high unemployment and poverty levels. The SACP views this move as corporate irresponsibility and a reflection of the profit-before-people mentality that continues to drive capitalist enterprises, even when alternative, socially responsible solutions are available.

The Party notes that Beeshoek Mine has been a key source of livelihood for thousands of workers and families for decades. The sudden withdrawal of operations and the retrenchment of workers will not only deepen economic hardship in Postmasburg and surrounding towns but also undermine government efforts to promote industrial development and inclusive growth in the province.

While we recognise the operational and commercial challenges cited by Assmang, including the expiry of its supply agreement with ArcelorMittal South Africa (AMSA), we reject the notion that mass retrenchments and mine closure are the only solutions. The SACP calls for urgent intervention by the Department of Mineral Resources and Energy (DMRE) led by Minister Gwede Mantashe, the Department of Trade, Industry and Competition (DTIC), Department of Employment and Labour, and relevant state-owned entities to safeguard jobs and local livelihoods.

The SACP proposes the following alternatives:

1. State Intervention and Public Ownership Options

The DMRE and Industrial Development Corporation (IDC) should explore mechanisms to acquire or co-manage Beeshoek Mine under a worker-community-state partnership model, ensuring continued operations and beneficiation within South Africa.

2. Local Beneficiation and Downstream Industrialisation

Instead of closing, the mine’s ore could support small-scale steel or manufacturing initiatives in the region, creating local beneficiation projects that add value and sustain employment.

3. Partnerships with Emerging and Community Mining Cooperatives

The state should assist in establishing community-based mining cooperatives that can operate parts of the mine or reprocess existing resources, with financial and technical support from the IDC and Mintek.

4. Renewed Engagement with AMSA and Other Buyers

Government must facilitate urgent negotiations between Assmang, AMSA, and potential new domestic or export markets to restore demand and maintain production levels.

5. Economic Diversification and Worker Reskilling

Any transition plan must include state-funded retraining and redeployment programmes that prepare affected workers for employment in renewable energy, infrastructure, and manufacturing sectors.

6. Moratorium on Retrenchments

The SACP calls on Assmang to halt all retrenchments while these alternatives are being explored, and to work transparently with government, labour unions, and community representatives to find a sustainable path forward.

Conclusion

The SACP stands firmly with the workers of Beeshoek Mine and their families. We will mobilise through the Tripartite Alliance, NUM, COSATU, and progressive community structures to resist this corporate assault on jobs and livelihoods.

The Party reiterates that mineral wealth belongs to the people of South Africa, and it must be used to advance social and economic justice — not to enrich shareholders while communities are left in despair.

The SACP calls for an urgent stakeholder meeting involving government, labour, and Assmang management to avert a socio-economic disaster in Postmasburg.

Issued by the SACP Northern Cape

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