Story audio is generated using AIDiscussions are now at an advanced stage between Arcelor Mittal South Africa (Amsa), ArcelorMittal Group, and the Industrial Development Corporation (IDC) as the latter assesses the long-term viability of Amsa’s long steel business, after providing funding to keep the operations running. “Shareholders should note that ArcelorMittal South Africa, ArcelorMittal Group, and the Industrial Development Corporation are now at an advanced stage to finalise agreement regarding the potential transaction,” it said in a cautionary announcement on FridayIt added that further announcements on the matter will be made as and when appropriate. Shareholders were advised to continue exercising caution when dealing in the company’s shares.Amsa said last month there had been some delay in the anticipated timelines. The discussions remained subject to the conclusion of definitive agreements and receipt of various approvals, it said then.Business Day reported in May that the IDC is inching closer to making a decision on a transaction with loss-making Amsa after professional services firm KPMG completed a tax and due diligence study on the country’s primary steel producer.The IDC confirmed to Business Day that KPMG had concluded its work as mandated, and the national development finance institution’s board was still mapping a way forward.The IDC had to recontract KPMG earlier this year as a single-source supplier after it had completed its initial due diligence exercise but was asked to undertake a further assessment of the embattled company.With KPMG having concluded the second leg of the due diligence exercise and presented the IDC with the report, the ball is now in the IDC’s court to arrive at a decision, having already invested billions of rand in Amsa.Last year the IDC provided Amsa with R2bn in the form of a facility, which, among other considerations, requires the parties to agree to its repayment. This was not enough to stave off the closure of Amsa’s long steel business.Amsa recently reported widening losses in the six months ended June.The company said its turnaround efforts were gaining momentum despite reporting a wider interim loss, pointing to operational improvements and cost reductions while challenging market conditions, high levels of steel imports and a stronger rand weighed on performance.The steelmaker reported a headline loss of R1.49bn, compared with a loss of R1.01bn a year ago. Revenue fell 30% to R12.04bn, while the earnings before interest, taxes, depreciation and amortisation (ebitda) loss widened to R409m from R110m.The company has spent the past 18 months cutting costs and restructuring the business, including putting the loss-making long steel operation into care and maintenance. Business Day