Merafe, Glencore Unit In Talks Regarding Worsening Industry Conditions

Miner Merafe Resources Ltd on Friday said it and Glencore Operations South Africa Pty Ltd have commenced a consultation process in terms of sections 189 and 189A of the Labour Relations Act No 66 of 1995.

The move comes amid the worsening operating environment across the South African ferrochrome industry, including unsustainable electricity pricing, Merafe explained.

Despite significant investments in an attempt to make the operations more competitive, Merafe and the Glencore PLC unit have continued to come under substantial operational and financial pressures.

"The parties view their engagement with the employee representatives and recognised trade unions of its operations as an ongoing process and all alternatives will be considered," Merafe said in its statement Friday.

Merafe shares were trading 1.8% lower in Johannesburg on Friday at ZAR0.55 each, while Glencore shares were up 1.0% at ZAR37.31. In London, Glencore shares were trading 0.9% higher at 172.94 pence each.