Swiss mining company Glencore said on Monday that is may halve production at its 720,000 metric tonnes (t)/yr Lion ferro-chrome smelter in South Africa because of challenging market conditions.
Merafe Resources, a South African mining firm and junior partner in a ferro-chrome joint venture with Glencore, also said the Lion Smelter is under evaluation and could be reduced to half of its operating capacity. Operations at all of Glencore's joint venture smelters in South Africa remain suspended.
Glencore on Monday also said it has notified employees and stakeholders of the possibility of dismissals at its 240,000 t/yr capacity Boshoek and 553,000 t/yr capacity Wonderkop ferro-chrome smelters, its Rhovan vanadium mine and smelter complex, and its carbon division in Emalahleni, in accordance with the South African Labor Relation Act of 1995.
Glencore cited a "very weak operating environment", saying it does not expect a significant improvement "in the near to medium term".
The announcement follows the South African government imposing export controls on chrome ore and announcing a plan for the electricity and energy department to complete a government-industry agreement for tariff realignment in support of the ferro-chrome sector.
