Samancor Chrome, which is the second largest ferrochrome producer globally, has stated that it plans to take measures in order to cut its costs, similar to other South African miners. The key reason is the challenging business conditions.
The company, capable of around 1 million mt of ferrochrome production, has recently signed a letter of intent according to which it could cut about 2,500 jobs at its Eastern Chrome and Western Chrome mines. Such actions are caused by the downturn in the global chrome market, increased tariffs by South African state-owned electricity monopoly Eskom and some issues with electricity supplies.
As SteelOrbis reported previously, Glencore-Merafe has also commenced a restructuring process, intending to retrench staff at its Rustenburg ferrochrome smelter.