Glencore weighs job cuts at South African ferrochrome and vanadium plants

Glencore has begun a retrenchment consultation process at several of its South African operations, raising fresh concerns about the future of jobs in the ferrochrome and vanadium industries.

The move affects the joint-venture Rustenburg smelters run with Merafe Resources, as well as the Rhovan vanadium operation in North West and Glencore’s carbon division in Emalahleni.

Why Glencore is cutting back

South Africa holds about 80% of the world’s chrome ore reserves, making it a crucial player in global ferrochrome production. But repeated power cuts, higher electricity tariffs, and weak market conditions have battered the industry.

In May, Glencore suspended production at its Boshoek, Wonderkop, and Lion smelters. Now, both Boshoek and Wonderkop face retrenchments, while Lion could see its operating capacity reduced by half.

Jobs at risk

The company did not confirm how many jobs are on the line. But unions warn the numbers are significant.

• Solidarity’s deputy general secretary Willie Venter said 10 of Glencore’s 22 furnaces are already closed permanently or temporarily.

• If more shutdowns follow, he estimates 2,425 direct jobs and more than 17,000 indirect jobs could be lost.

Wider impact

The retrenchment process also includes restructuring of support services at Rustenburg, Lydenburg, and Glencore’s head office. Notices have been sent to unions and affected staff. The company stresses that the process is still under consultation and “not a foregone conclusion.”

Industry challenges

The ferrochrome sector has long warned that load shedding and steep energy costs threaten South Africa’s ability to remain competitive. Without a sustainable plan to stabilise energy supply and pricing, more producers may follow Glencore’s path.

For communities around Rustenburg and Emalahleni, the stakes go beyond economics. Mining jobs support entire local economies, and large-scale retrenchments ripple into small businesses, schools, and households.

{Source:Reuters}

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