Despite Eskom cutting electricity prices by more than 50% to prevent job losses, Samancor's 2,400-strong workforce faces layoffs.
The National Union of Mineworkers (NUM) has vowed to fight planned job cuts at a ferrochrome smelter.
electricity price cut
Eskom announced price cuts for Samancore and Glencore's joint venture with Merafe Resources late last month after the embattled companies agreed to halt planned job cuts while negotiating with the power provider in December.
Their electricity costs have increased tenfold since 2008, adding to the smelters' problems as they face increasing competition from Chinese producers.
However, Samancor has restarted the layoff process, while the Glencore-Merafe JV said it had postponed its job cuts until March 31.
“This move is a devastating blow to the workforce, particularly as NUM has fought tirelessly to negotiate lower electricity rates to ensure the sustainability of the company’s operations,” the union said in a statement.
“The union is committed to challenging this and will explore all available avenues to save our members' jobs,” it said.
South African labor laws require companies to consult unions before implementing job cuts.
Samancor said it would begin negotiations with unions representing workers at its operations in the next few weeks.
“Although the reduced tariff addresses immediate power cost pressures, the existing terms and conditions governing it remain a threat to the long-term viability of the ferrochrome industry,” Samancor said in a response. reuters Question.
The company did not provide details of those terms.
Samancor said the proposed layoffs would affect about 2,400 employees at the company's smelters and corporate offices.
The government says only 11 of South Africa's 66 smelters are operational, largely due to high electricity costs.
South Africa, Africa's most advanced economy and the world's largest chrome ore producer, has lost its position as the top global processor of chrome conversion to ferrochrome due to China.
Energy-intensive smelters combine chromium and iron to produce ferrochrome, which is used primarily in steel production.
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