Glencore has started a retrenchment process at its Rustenburg ferrochrome smelter and vanadium operations in South Africa, according to a Reuters report.
The move comes as the company faces a host of challenges including power cuts, increasing electricity costs and broader economic pressures that have affected the viability of its joint venture smelter operations with Merafe Resources.
South Africa is a significant player in the global ferrochrome market, holding around 80% of the world's known chrome ore reserves.
Despite this, Glencore's operations have been struggling, leading to the suspension of production at the Boshoek, Wonderkop and Lion smelters in May.
The retrenchment process is expected to impact the Boshoek and Wonderkop smelters in Rustenburg.
Furthermore, the Lion smelter is under review and could potentially see its operating capacity halved.
Glencore's Rhovan vanadium operations in the North West province and its carbon division in Emalahleni are also set to be impacted by the move.
In addition, Glencore will streamline and restructure support functions within the mining division at the Rustenburg and Lydenburg smelters, as well as head office and shared services functions.
The company has stated that the retrenchment process is not a “forgone conclusion” and has notified all recognised unions, affected employees and stakeholders, the report said.
The potential impact of these cuts is significant. According to Willie Venter, deputy general secretary of the Solidarity union, Glencore has already seen ten of its 22 furnaces either permanently or temporarily closed.
He cautioned that further closures could jeopardise approximately 2,425 direct and more than 17,000 indirect jobs.
In a separate development last month, US Gold chose Glencore Technology's Jameson Cell flotation technology to enhance gold and copper recovery at the CK Gold Project in Wyoming.
This decision stems from engineering, optimisation and trade-off studies done within the company’s definitive feasibility study and execution plan, with the engagement with Glencore Technology starting in late 2024.
