Glencore warns of job cuts over power costs
JOHANNESBURG – Glencore’s South African ferrochrome unit is threatening to pull out of talks with government.
This over a discounted electricity tariff, saying the conditions attached to the offer are unacceptable.
Eskom has proposed cutting power prices from R1,36 to 62 cents per kilowatt hour to help keep loss-making smelters operating, but the deal still requires regulatory approval.
READ | Eskom to implement 8.76% tariff increase
The multinational commodity trading and mining company said without relief, it may be forced to cut up to 1,500 jobs, while rival Samancor has already signalled layoffs will proceed.
The talks come as South Africa’s ferrochrome industry struggles with soaring electricity costs and rising competition from Chinese producers.
This leaves just 11 of the country’s 66 smelters still operational.
