Glencore Initiates Retrenchment Process at South African Ferrochrome and Vanadium Operations

Glencore, Merafe Begin Retrenchment at Rustenburg Smelters as Power Costs Hit South Africa’s Ferrochrome Sector

Glencore confirmed on Monday that a retrenchment process has begun at its joint-venture Rustenburg ferrochrome smelter and vanadium operations in South Africa, citing sustained economic pressures on the business.

South Africa holds around 80% of the world’s known chrome ore reserves, according to Glencore, giving the country a dominant role in global ferrochrome production.

However, persistent power shortages, rising electricity tariffs, and broader economic challenges have weighed heavily on the industry.

In May, Glencore and its joint-venture partner Merafe Resources suspended production at the Boshoek, Wonderkop, and Lion smelters due to these pressures.

Merafe said in a separate statement that the consultation process stems from “the continuing economic pressures facing the South African ferrochrome industry and the lack of sustainable industry solutions that could alleviate the pressures in the near to medium term.”

The retrenchment process will directly affect the Boshoek and Wonderkop smelters in Rustenburg, while the Lion smelter is under review and may have to cut its operating capacity by half.

Glencore added that its Rhovan vanadium operations in North West province and its carbon division in Emalahleni will also be impacted.

The company said it plans to streamline and restructure support functions across its Rustenburg and Lydenburg smelters, head office, and shared services divisions.

“It is important to note that the process is not a foregone conclusion. A notice has been sent to all recognised unions, affected employees, and other stakeholders,” Glencore said, without specifying how many jobs are at risk.

However, the Solidarity union has warned of serious consequences if more furnaces are shut down. Willie Venter, the union’s deputy general secretary, said Glencore has already closed 10 of its 22 furnaces, either permanently or temporarily.

He cautioned that a full closure of the remaining furnaces could put 2,425 direct jobs and more than 17,000 indirect jobs in jeopardy.