by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – A bleak New Year is looming for hundreds of workers at Transalloys, South Africa’s last remaining manganese smelter, after the company issued a Section 189 notice warning of possible large-scale retrenchments in the coming weeks.
Transalloys chief executive Konstantin Sadovnik said the decision was unavoidable amid worsening operating conditions. “We regret placing this level of uncertainty on our employees and their families at this time, but the ongoing lack of clarity around our operating environment leaves us with no responsible alternative,” he said.
The notice places about 600 well-paid direct jobs at risk and threatens an estimated 7,000 livelihoods supported indirectly through the smelter’s supply chain and the broader eMalahleni (formerly Witbank) economy. Sadovnik described the announcement as “extraordinarily difficult” as the country approaches the New Year.
At the heart of the crisis is electricity pricing. Energy is the single largest cost driver for manganese smelting, one of the most energy-intensive industrial processes. Sadovnik said that at current NERSA-approved tariffs, Transalloys is competing with international smelters whose electricity costs are roughly half those in South Africa, making sustained operation impossible.
Throughout 2025, the company operated intermittently as negative margins and cash-flow pressure prevented continuous production. Only two of its five furnaces are currently running, underscoring the depth of the downturn.
The challenges facing manganese beneficiation are more severe than those confronting the ferrochrome sector, which has drawn recent public attention. Unlike some competitors, Transalloys is not an integrated producer and cannot offset beneficiation losses with mining profits. Compounding this are volatile exchange rates and weak global prices for manganese ferroalloys, bulk commodities sold into highly price-sensitive markets.
While Transalloys has welcomed government discussions on a sustainable energy-pricing framework for energy-intensive smelters, prolonged uncertainty has become a critical threat. Sadovnik warned that without swift inclusion of manganese smelters and clear implementation timelines, the company will be forced to restructure by February.
Despite the grim outlook, Transalloys said it remains committed to engaging urgently with government, Eskom, NERSA and trade unions to find a solution. “Time is now the critical factor,” Sadovnik said.
– CAJ News