Cheap electricity promises fail to stop layoffs as South African mining companies continue to streamline staff

Golden Ten Data reported on March 11 that, according to the National Union of Mineworkers of South Africa, even though the South African government and the national power company have agreed to reduce electricity prices for its smelters, Samancor Chrome is still determined to proceed with its layoff plan. The labor union stated in a declaration at its Johannesburg headquarters that Samancor’s smelting operations and company headquarters are expected to cut about 2,400 positions. On February 27, South Africa offered cheaper electricity to the ferrochrome smelting joint venture between Samancor and Glencore in an attempt to save jobs. Previously, the industry, government, and the national power company Eskom had been negotiating this issue for months. Currently, only 11 out of South Africa’s 66 smelters remain in operation, highlighting the severe impact of rapidly rising electricity prices on the metal processing industry.