The group accuses the steel manufacturer of failing to employ young people from the area.
It says ArcelorMittal has also not empowered local companies nor has it adhered to social responsibility programmes.
The mining town has seen a huge decline in employment and economic development due to the recent closure of mines.
There are serious concerns that without mining activities, Thabazimbi could become a ghost town.
For an update we cross to SABC NEWS reporter, Lutendo Bobodi.
For more news, visit sabcnews.com and also #SABCNews on Social Media.
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