ArcelorMittal and South Africa’s biggest development finance institution have resumed talks over the potential acquisition of the Luxembourg-based steel giant’s operations in the African country, after failing to lure other suitors.

The Industrial Development Corporation (IDC) will submit a nonbinding offer for the business, said the people, who asked to not to be identified because the information is still private. Late last year, talks between the parties fell apart without a deal after ArcelorMittal didn’t accept an informal proposal of about R8.5-billion, which would have included the repayment of R7-billion in debt to the South African unit’s parent.

Talks between ArcelorMittal, the IDC and South Africa’s trade and industry department started in November 2023 when ArcelorMittal South Africa, known locally as AMSA, announced it planned to shut two steel mills that produce grades that are crucial to the country’s key automotive and mining industries. Those discussions became exclusive last year when the IDC, which holds about 8% of AMSA, granted the steelmaker a loan to stave off the closure.

ASMA has now closed the two steel mills and an iron-ore mine. It still operates a mill in Vanderbijlpark, south of Johannesburg, which produces steel sheets and other products and has idled facilities in the capital, Pretoria, and in the west coast town of Saldanha. The IDC sees its mills as crucial to the nation’s industrial sector.

AMSA declined to comment.

An IDC spokesperson said it continues to engage AMSA, the ArcelorMittal Group and other stakeholders, including the Department of Trade, Industry and Competition, to find a sustainable solution to challenges facing the company.

AMSA, formerly known as Iscor, was acquired by Indian billionaire Lakshmi Mittal in 2003. Mittal in 2006 combined with Arcelor to form ArcelorMittal.