The Congress of South African Trade Unions (COSATU) urges solutions quickly be found to prevent the closure of Transalloys, South Africa’s last remaining manganese smelter. 

The loss of this strategic company would be a devastating blow to an already embattled economy and a society reeling from a 43.7% unemployment rate.  We simply cannot afford to lose 600 direct and 7 000 indirect jobs, mostly in eMalahleni, Mpumalanga.  It would mark a massive setback for South Africa’s efforts to reindustrialise the economy, expand local beneficiation and nurture 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.

COSATU is confident that the reduced tariff relief package agreed to for similarly challenged smelters at Samancor Chrome and Glencore-Merafe Chrome Venture, provides a positive blueprint for Transalloys. 

Whilst such an agreement is an absolute necessity and will provide badly needed breathing space for Transalloys, a longer-term solution is needed to place electricity tariffs back on a trajectory that is affordable for consumers, from working class communities to heavy intensive users, in particular smelters and the mining industry. 

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.

COSATU will be engaging Eskom, government and industry to ensure that a win-win solution is put in place to save workers’ jobs at Transalloys and its value chain whilst enabling Eskom to fulfill its mandates.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za