Glencore’s South African Smelters Near Job-Cut Deadline on Power

95tjzcpyamj96zvr4o96n3lo_media_dl_1.png FAPA, International Chromium DevArticle content(Bloomberg) — Glencore Plc’s ferrochrome smelting venture in South Africa is running out of time to find a solution that would lower electricity costs and enable it to avert job cuts.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe business with Merafe Resources Ltd. that processes chrome ore into ferrochrome extended a consultation process around the potential losses in December to the end of this month. About 1,500 direct jobs are at stake if no solution is reached to provide cheaper power, Japie Fullard, chief executive officer of Glencore Alloys, said in an interview.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentSouth Africa’s Electricity Minister Kgosientsho Ramokgopa has been searching for a solution to rising electricity costs. The local ferrochrome industry highlighted the problem with competition in China taking a growing share of its business, in part due to the benefit of cheap power.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentFollowing talks with the government and state-owned utility Eskom Holdings SOC Ltd., the National Energy Regulator of South Africa approved a 35% year-long reduction in power prices for ferrochrome smelters operated by Glencore-Merafe Chrome and Samancor Chrome Ltd. Article contentThat’s allowed the startup of the venture’s Lion smelter in Limpopo province, which is able to roughly break even at the 87 rand cents ($0.05) per kilowatt hour level, according to Fullard. “We’re actually commissioning the first two furnaces this week.” Article contentThe Glencore venture’s Boshoek and Wonderkop smelters that were shuttered in December need an even lower price sought by the broader industry of 62 cents, he said, adding that a stronger rand has added further strain.Article contentSamancor faced cuts of nearly 2,500 workers, labor union Solidarity said in November.Article contentThe business, government, Eskom and labor have worked together in the search for a solution to bring the electricity cost down, according to Fullard. Still, it takes capital to restart operations that companies need to justify. Article content“Whatever solution is being put on the table mustn’t be fluff,” he said. “It must be hard, concrete action.”Article contentTrending Trump rebuked as U.S. House votes against some tariffs on Canada Economy BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Bank of Canada says next rate move 'unusually difficult' to predict amid trade and geopolitical tensions Economy Trump privately weighs quitting CUSMA trade deal he negotiated Economy Subscriber only. These are the TFSA and RRSP tricks that can make you a fortune Subscriber only Personal Finance Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Trump rebuked as U.S. House votes against some tariffs on Canada Economy BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Bank of Canada says next rate move 'unusually difficult' to predict amid trade and geopolitical tensions Economy Trump privately weighs quitting CUSMA trade deal he negotiated Economy Subscriber only. These are the TFSA and RRSP tricks that can make you a fortune Subscriber only Personal Finance