Glencore Plc, the Swiss commodities group led by South African executive Gary Nagle, will meet with the South African government this week in a bid to prevent smelters that produce a key stainless-steel ingredient from cutting thousands of jobs. The companys local operations are under pressure from rising electricity costs and unreliable supply.
Japie Fullard, chief executive of Glencore Alloys, said he will meet Electricity Minister Kgosientsho Ramokgopa on Friday to discuss ways to keep its joint venture with Merafe Resources Ltd. afloat. The venture converts chrome ore into ferrochrome, a critical material for global steel production. A ministry spokesperson confirmed the planned meeting.
Thousands of jobs are at stake, Fullard said, adding that the plants can no longer compete against producers in China where electricity is cheaper.