Glencore and Merafe South Africa joint venture plans to lay off staff involving a number of ferrochromium businesses

SMM6, May 22 / PRNewswire-Asianet /-recently, the SA joint venture between Glencore and Merafe began the layoff process. Merafe said that Glencore Business South Africa proprietary Co., Ltd. (the alloy division) and Merafe (the "Contracting Party") have begun a consultation process under sections 189 and 189A of the Labour Relations Act No. 66 of 1995 ("LRA") and are in consultation with employee representatives and recognized unions.

This process is the result of the deterioration of the operating environment of the entire South African ferrochrome industry, including unsustainable electricity prices. Despite significant investments to increase business competitiveness parties continue to be under tremendous operational and financial pressure.

Operations affected by the process include Lydenburg smelter, Wonderkop smelter, Boshoek smelter and Lion smelter, which will also affect chromium mines in the east and west. The current consultation process on sections LRA 189 and 189A of the Rustenburg smelter, published on SENS on 20 January 2020, will continue.

Both parties regard business dealings with employee representatives and recognized trade union organizations as an ongoing process and will consider all alternatives.

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