Glencore Begins Retrenchment at South Africa Ferrochrome and Vanadium Plants
Glencore has initiated a formal retrenchment (Section 189) process across its South African ferrochrome and vanadium operations in response to mounting economic pressures. The move could impact thousands, pressuring communities and heightening concerns for mining jobs and the local economy.
Scope of the Cuts
The company has commenced consultations affecting its Rustenburg operations, including the Boshoek and Wonderkop ferrochrome smelters, as well as considering a 50% capacity reduction at the Lion smelter. Its Rhovan vanadium operations, the carbon division in Emalahleni, and support functions in Rustenburg, Lydenburg, and Johannesburg are all included. Reuters
Union Perspective and Community Impact
The Solidarity union warned that even though the consultation is ongoing, up to 2,425 direct jobs and 17,000 indirect roles could be jeopardized if closures proceed. Already, 10 of the venture’s 22 furnaces are offline. South Africa hosts nearly 80% of global chrome reserves, amplifying the disruption’s ripple effects.
Root Causes
The mining sector’s struggle stems from persistent load-shedding, soaring electricity tariffs, and a challenging global market. In May, operations were suspended at several smelters, signaling prolonged distress.
What’s Next?
- Unions and stakeholders continue to negotiate, with hopes to reduce or mitigate closures.
- Full or partial shutdowns would reverberate in local economies reliant on mining and industry.
This crisis underscores the urgency of industrial reform and energy policy intervention in South Africa’s resource sector, especially amid global demand uncertainties.
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By Fidelis News Staff | 2 September 2025
