Glencore-Merafe Venture Plans Smelters Closure, Job Cuts in South Africa
By Andrea Figueras
Merafe Resources said its South African chrome venture with Glencore plans to close two smelters and cut jobs due to proposed electricity prices.
Merafe said Tuesday that the latest electricity-tariff proposal from Eskom Holdings, South Africa's state-owned power company, doesn't allow for the long-term viability of the Glencore-Merafe Chrome Venture's Boshoek and Wonderkop ferrochrome smelters, but does support the continued operation of its Lion smelter.
Merafe said the joint venture issued formal retrenchment notices and approvals of voluntary severance packages, which will take effect Dec. 9 unless the South African government proposes a viable solution by Dec. 8.
Eskom and the South African government didn't immediately respond to a request for comment.
The joint venture had said in recent weeks that high electricity bills put the future of its Wonderkop and Boshoek smelters, and a significant number of jobs, at risk.
"The company remains committed to engaging with all stakeholders throughout this process and maintaining operational sustainability where possible," Merafe said.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
December 02, 2025 06:05 ET (11:05 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
5 Stocks to Sell for Tax-Loss Harvesting
33 Undervalued Stocks to Buy Before the Market Shifts Again
Ask the Analyst: What Is the Best Source for Low-Risk Tax-Free Income?
What’s Ahead for Stocks This Quarter—and Where to Invest
United States