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Joint venture partners Glencore and Merafe Resources could cut up to 665 jobs and have started consultations with workers at their Rustenburg ferrochrome smelter.

Local chrome firms on Monday warned of more than 1,200 potential job cuts, citing power cuts, rising electricity tariffs and increased competition from overseas.

The potential layoffs highlight the risks posed to Africa’s most industrialised economy by struggling state power utility Eskom, which is struggling with breakdowns at its coal-fired power plants and is mired in a financial crisis.

They also pile more pressure on President Cyril Ramaphosa’s government, which is trying to contain 29% unemployment.

Joint venture partners Glencore and Merafe Resources could cut up to 665 jobs and have started consultations with workers at their Rustenburg ferrochrome smelter.

“The consultation process is as a result of deteriorating operations and market conditions across the
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Eskom CEO Phakamani Hadebe made a desperate plea for higher Eskom tariffs over the next three years on Monday, as well as for more money from the government, while apologising to SA for the mess the utility is in.

Hadebe was speaking in Cape Town at public hearings held by the National Energy Regulator of SA (Nersa) to interrogate Eskom’s application for a 15% tariff increase beginning in 2019-2020.

The application needs to meet Nersa’s approval before it can be applied to customers.

Eskom is in a dire financial situation, with a R419bn debt it is unable to service from the revenue it earns. It costs more for it to generate electricity than it recoups from tariffs due to a high cost base, which Nersa believes should not be made the burden of the South African public.

“I am the first to acknowledge that Eskom has contributed to its own problems. Eskom is compelled to apologise to SA for having brought these challenges. They could hav
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SA chrome firms warn of more than 1,200 job cuts – Eskom’s unreliability and rising tariffs were some of the main reasons for the layoffs

Sorry SA, but we need more money, Eskom pleads – Eskom is asking for a 15% tariff increase over the next three years – but in the same breath employs more workers with hefty salaries