Glencore's South African venture With Merafe starts job cuts process

A joint venture in South Africa with commodities giant Glencore last Friday began consulting employees on possible job cuts because of the weak economic environment, it said.

The Glencore-Merafe Chrome Venture runs seven chrome mines and five ferrochrome plants in South Africa, and employs a total of 11,448, including contractors, the Merafe website says.

"The (consultation) process is as a result of the worsening operating environment across the South African ferrochrome industry, including unsustainable electricity pricing," a company release said.

The statement said smelter operations in Lydenburg, Wonderkop, Boshoek and Lion would be affected as well as the Eastern and Western Chrome Mines.

South Africa, the world's top chrome ore producer, implemented a strict lockdown in late March to slow the spread of the COVID-19.

The lockdown forced many mines to halt production and the Glencore-Merafe Chrome Venture was among those to declare force majeure, releasing it from contractual obligations.

Swiss-based Glencore owns 79.5% of the Glencore-Merafe Chrome Venture, which has a total capacity of 2.Asian Metal CopyrightA joint venture in South Africa with commodities giant Glencore last Friday began consulting employees on possible job cuts because of the weak economic environment, it said.Asian Metal Copyright3 million tonnes of ferrochrome per annum.

President Cyril Ramaphosa eased the lockdown restrictions in April, allowing mines to operate at full capacity but by then miners, as well as banks, retailers and manufacturers were announcing job reduction plans.

.Asian Metal Copyright "The consultation process is as a result of the worsening operating environment across the South African ferrochrome industry, including unsustainable electricity pricing," a company release saidAsian Metal Copyright