A section of the Glencore Merafe Chrome Venture. High energy costs and increased competition from China led to the suspension of smelting operations, but lower electricity tariffs had since improved the competitiveness of the smelter.
South Africa's last remaining manganese smelter, Transalloys, has stopped ferroalloys production, with no indication of when operations may resume - the shutdown affects 600 jobs and 7,000 downstream livelihoods.
Chief executive Konstantin Sadovnik said the company had no option but to shut down its furnaces after years of mounting financial losses while negotiations over electricity tariffs with Eskom and the government continue.
He said the suspension of smelting places around 600 permanent, well-paid jobs and an estimated 7,000 downstream livelihoods at risk as the company prepares to mothball the plant. Section 189 consultations and a collective retrenchment agreement have already been concluded.
The National Energy Regulator of South Africa (NERSA) on May 29, 2026 had finalised a reduced rate of 62 cents per kilowatt-hour to save jobs and protect struggling ferrochrome smelters. However, this benefit did not include the remaining non-ferrochrome smelters, namely manganese and ferrosilicon, which includes Transalloy.
