The Congress of South African Trade Unions (COSATU) has called for urgent intervention to prevent the closure of Transalloys, South Africa’s last remaining manganese smelter.
COSATU spokesperson Matthew Parks says the loss would deal a significant blow to the country’s economy, particularly in eMalahleni, Mpumalanga.
He says the closure comes at a time when South Africa is grappling with an unemployment rate of 43.7%.
According to Parks, around 600 direct jobs and a further 7 000 indirect jobs are at risk if the smelter closes. He said the shutdown would also undermine efforts to reindustrialise the economy, expand local beneficiation and strengthen industrial value chains.
“It is critical that Transalloys, Eskom, the Departments of Electricity and Energy plus Trade, Industry and Competition meet and pull out all stops to find solutions to this long simmering crisis. Closure of this smelter cannot be an option,” Parks stated.
COSATU said it believes the reduced electricity tariff relief package agreed for struggling smelters at Samancor Chrome and the Glencore-Merafe Chrome Venture could provide a model for Transalloys.
The federation said while such a package would offer much-needed short-term relief, a longer-term solution was needed to ensure electricity tariffs remain affordable for consumers, particularly energy-intensive industries such as mining and smelting.
“Key to making electricity affordable to unlock economic growth and ease the cost-of-living crisis for the working and middle classes, is to ensure that all consumers pay for electricity consumed. Municipal debt currently stands at over R120 billion and is rising by approximately R20 billion annually. Tackling this will enable Eskom to end its dependence upon above inflation tariff hikes and in fact begin to reduce the price of electricity and provide greater relief for indigent households,” he added.
COSATU said it would engage Eskom, government and industry stakeholders in an effort to secure a solution that protects jobs at Transalloys and across its value chain, while allowing Eskom to meet its operational mandates.
POWER Digital
Source: https://www.power987.co.za/featured/cosatu-calls-for-urgent-action-to-prevent-transalloys-closure/