Global commodities giant Glencore has confirmed it has begun a retrenchment process at its Rustenburg ferrochrome smelter and Rhovan vanadium operations in South Africa, citing mounting economic and operational challenges.
South Africa, home to around 80% of the world’s known chrome ore reserves, is a critical player in the global ferrochrome industry. Yet, persistent power cuts, soaring electricity prices, and broader economic pressures have left smelters struggling to remain viable.
In May, Glencore and its joint venture partner Merafe Resources suspended output at the Boshoek, Wonderkop, and Lion smelters, dealing a heavy blow to ferrochrome production. The retrenchment process now under consultation will directly affect the Boshoek and Wonderkop facilities, while the Lion smelter may face a cut to half of its operating capacity.
Glencore also confirmed that restructuring will extend to its carbon division in Emalahleni, as well as support functions at its Rustenburg and Lydenburg smelters, head office, and shared services.
Merafe said in a separate statement that the industry’s difficulties stem from a lack of “sustainable solutions” to the power and cost crisis, leaving little room for relief in the short to medium term.
While the number of potential job losses has not been disclosed, unions have already raised alarm. Solidarity union deputy general secretary Willie Venter warned that with 10 of Glencore’s 22 furnaces already closed, further shutdowns could put 2,425 direct jobs and more than 17,000 indirect jobs at risk.
Glencore stressed that the retrenchment process is not yet a foregone conclusion, noting that formal notices have been sent to unions, employees, and stakeholders.