Miningmx reports that retrenchments will be commenced with at the idled Wonderkop and Boeshoek smelters operated by the Glencore-Merafe Chrome Joint Venture (JV). Some employees at Glencore’s Alloys division would also be affected, the mining and commodities marketing group announced on Tuesday.
Merafe has a 20.5% stake in the JV, while Glencore owns the balance. According to trade union Solidarity, some 2,425 direct jobs and more than 17,000 indirect jobs will be affected. Glencore said, however, that its Lion smelter would continue to be operational. Boshoek and Wonderkop will be placed on care and maintenance. The layoffs come in the absence of a new electricity tariff that was under negotiation with the SA government.
Glencore laid the retrenchments at the door of government which owns power utility Eskom. “Despite its (the JV’s) engagement with Government no viable interventions or solutions have been presented to address the severe challenges impacting our ferrochrome operations, the most pressing requirement being the provision of a competitive energy tariff,” Glencore indicated. “As a result, in the absence of any viable solution from the Government, retrenchments will commence within the next couple of weeks,” it added.
- Read the full original of the report in the above regard by David McKay at Miningmx
- Read too, Energy tariff impasse threatens 2,500 jobs in chrome industry, at BusinessDay (subscriber access only)
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