parallel score Chrome is moving ahead with plans to lay off about 2,400 employees at its smelting operations and corporate offices. Bloomberg News cited a statement from the National Union of Mineworkers..
The newswire said this is despite the government and Eskom agreement to reduce electricity tariffs for ferrochrome producers, which would make their businesses more sustainable and preserve jobs.
The NUM described the move as a betrayal of good-faith negotiations to protect jobs. “We need to sit down with them and understand,” said NUM president Philip Vilakazi. Samancor did not respond to a request for comment, Bloomberg News said.
South Africa offers subsidized power to Samancor and Glencore's ferrochrome smelting joint venture on 27 February This followed months of negotiations between the industry, government and the state utility to prevent job losses.
Bloomberg News said the proposed tariff of 62 cents per kilowatt-hour – equivalent to about four US cents – matches the rate the industry had previously requested, although details of implementation remain unclear.
Glencore said it would extend its layoff deadline from February 28 to the end of March, but added that the cheaper power terms from Eskom must be commercially viable and support the long-term sustainability of its smelters.
Only 11 of South Africa's 66 ferrochrome smelters are in operation, highlighting the impact of rising electricity costs on the metals processing sector, the newswire said.