South Africa's Last Manganese Smelter Faces Closure Over High Electricity Costs

Transalloys, operating South Africa's last manganese smelter, may shut down due to high electricity costs. The potential closure threatens 600 jobs and impacts 7,000 livelihoods.

Insights:
South Africa's last remaining manganese smelter, operated by Transalloys, stands on the brink of closure due to exorbitant electricity costs. CEO Konstantin Sadovnik konstantin sadovnikannounced on December 30 that the facility could either be mothballed or permanently closed if electricity pricing issues remain unresolved. The decision is critical for South Africa ZAZA, the world's largest manganese producer, as it would eliminate a key processing facility and increase reliance on exporting manganese ore .
Transalloys has been grappling with financial losses for approximately three years, with electricity expenses consuming nearly 40% of its total costs. The company's electricity costs are roughly double those of foreign competitors, placing it at a severe disadvantage in the global market. This financial strain has necessitated plans to cut approximately 600 direct jobs, potentially affecting up to 7,000 livelihoods in the eMalahleni municipality.
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