South Africa-based ferrochrome producer Merafe Resources has announced that the Glencore-Merafe Chrome Venture has held extensive engagements over the past three months with ministries, unions and employees in an effort to stabilize its energy-intensive ferrochrome operations.
However, no viable tariff relief or support mechanism has been offered so far, a situation Merafe says is unsustainable for an industry already under severe cost pressure. The company stressed that a competitive electricity price is essential for keeping its ferrochrome smelters operational amid rising energy costs.
Retrenchments and possible operational shutdowns
If urgent support is not secured, Merafe Resources says it will have to initiate retrenchment processes in the coming weeks.
The company has already outlined an operational response, under which the Wonderkop and Boshoek smelters will be placed on care and maintenance, with only the Lion smelter remaining operational.
Merafe stated it will maintain transparent communication with employees, unions and government stakeholders as the situation develops.
