Kgosientsho Ramokgopa, Minister of Electricity. (Photo: GCIS/X)
Electricity and Energy Minister Kgosientsho Ramokgopa’s agreement with Glencore-Merafe and Samancor should now be used as a blueprint to help other smelters, says Solidarity.
The minister recently announced a provisional power tariff of 62c per kWh for Glencore-Merafe and Samancor.
Solidarity says there must now be urgent clarity on the conditions of this agreement after it became known that smelters, including Ferroglobe SA, may have to close if they do not also get access to a competitive electricity tariff.
Ferroglobe SA announced late on Sunday evening that it will have to cease operations unless the proposed tariff relief that Ramokgopa confirmed at the end of February is made available to the group before 1 April.
“We are very worried. Ferroglobe is the only local producer of ferrosilicon left in South Africa. If they cease operations, it is a huge blow to our industrial capacity and to employees,” says Willie Venter, deputy general secretary of Solidarity.
Solidarity has already warned that selective relief for certain smelters could put other smelters at risk. However, it is not only Ferroglobe SA that may now close. Other companies, such as Transalloys, are also under pressure, says Venter.
(Photo: Provided)
“We are concerned about the slow progress in the current negotiations, while other companies also urgently need relief. The focus must be on preventing closures and job losses – not just meeting deadlines.”
Venter says Solidarity is therefore now making an urgent appeal to the government and Eskom to provide clarity on the 62c agreement as a matter of priority; to extend talks on tariff relief to Ferroglobe, Transalloys and others; to immediately enter into discussions with all affected companies; and to develop a sector-wide solution to the problem of power tariffs.
“The government will simply have to work with several companies at the same time and certainly quickly conclude the discussions with Glencore and Samancor. This is a sector in crisis and it needs real leadership now,” says Venter.