Merafe launches consultations on chrome operations restructuring

Merafe Resources Limited, through its Glencore Merafe Chrome Venture, has initiated a formal consultation process under Sections 189 and 189A of the Labour Relations Act, effective September 1, 2025. This follows earlier announcements regarding a "Business Review Process" and the suspension of smelting operations at the Boshoek and Wonderkop smelters from May 1 and May 31, 2025, respectively. The Venture's Lion smelter also saw a temporary suspension for maintenance.

The "Consultation Process" is driven by ongoing economic pressures in the South African ferrochrome industry and the lack of sustainable solutions. It will impact the Boshoek and Wonderkop smelters, with the Lion smelter being evaluated for a potential 50% reduction in operating capacity. Opportunities to streamline the mining division and operations at the Rustenburg and Lydenburg smelters, currently under care and maintenance, are also being investigated.

All stakeholders, including unions and affected employees, were invited to engage on alternatives such as voluntary severance packages, mitigation measures, and redeployment opportunities. Furthermore, Glencore is undertaking a restructuring exercise related to the head office and shared services functions of the Venture.