Switzerland-based mining company Glencore plans to restart operations at its 720,000 t/yr South African Lion ferro-chrome smelter in February, the company told Argus on Tuesday.
The Lion smelter will be Glencore and its local partner Merafe's sole operational ferro-chrome smelter in South Africa, after Merafe confirmed its plans on Tuesday to put the Boshoek and Wonderkop ferro-chrome smelters on care and maintenance from 1 January.
The venture suspended operations at all three ferro-chrome smelters earlier this year, citing weak demand from the European steel industry, competition from lower-priced Chinese ferro-chrome and high electricity costs in South Africa.
South African president Cyril Ramaphosa has set out an electricity tariff realignment programme to ease pressure on industrial power users, but these reforms are yet to be finalised despite being the most pressing requirement for the viability of the venture's ferro-chrome operations, Merafe said.
South African utility Eskom proposed an electricity tariff arrangement to Merafe last week after the closures were announced, but Merafe said this did not provide a sustainable solution for the long-term viability of the Boshoek and Wonderkop smelters.
Merafe issued retrenchment notices to between 1,200 and 1,400 workers, which will become binding on 9 December if a solution is not reached with the South African government.
Up to 300,000 direct and indirect jobs could be at risk at South African smelters and other related heavy industries from December to early 2026 after an inconclusive mediation process with the government, Labour union Solidarity chief executive Dirk Hermann warned last week.
The country's other main ferro-chrome producer, Samancor Chrome, has told the union that up to 2,500 jobs are at risk from downsizing and closure procedures at its operations next year.
