Views Article – Sharenet Wealth

Europe, News

South African miner Samancor Chrome says may cut nearly 2,500 jobs

(Adds detail, context)

JOHANNESBURG, Jan 22 (Reuters) – South African miner Samancor Chrome said it could cut close 2,500 jobs in response to weak chrome prices and power supply problems, according to a letter to unions seen by Reuters on Wednesday.

The warning follows a separate notification about 599 potential job cuts at its smelting operations and corporate offices, and highlights how the struggles of state power utility Eskom are dragging on the economy.

Samancor, a private company, produces more than 1 million tonnes of ferrochrome, used to make stainless steel, per year, according to its website.

It told unions it would hold talks over 2,438 potential job cuts at its Eastern Chrome and Western Chrome mines. It needed to cut costs and was facing increased power tariffs and problems with electricity supply, the letter stated.

Eskom is mired in financial crisis and beset by frequent breakdowns at its coal-fired power plants.

Restructuring the utility is a core component of an economic reform programme that President Cyril Ramaphosa hopes will attract foreign investors and lift the economic growth rate. (Reporting by Alexander Winning; editing Olivia Kumwenda-Mtambo and John Stonestreet)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Array ( )