600 jobs on the line as smelter crisis reaches boiling point
Cosatu says Eskom must focus on municipal debt before it hikes the price of electricity.
The future remains uncertain for the 600 permanent employees whose jobs are on the line after Transalloys stopped production.
The Congress of South African Trade Unions (Cosatu) has thrown its weight behind the manganese smelter, demanding an urgent intervention to prevent its closure.
“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. It would mark a massive setback for South Africa’s efforts to reindustrialise the economy, expand local beneficiation and nurture value chains,” said Matthew Parks, Cosatu Parliamentary Co-ordinator.
The union said it 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.
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According to Parks, it is critical that Transalloys, Eskom, the Departments of Electricity and Energy, as well as Trade, Industry and Competition meet and pull out all stops to find solutions.
“While such an agreement is an absolute necessity and will provide badly needed breathing space for Transalloys, a longer-term solution is needed for electricity tariffs that is affordable for consumers, from working class communities to heavy intensive users, in particular smelters and the mining industry.”
Parks said the 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 the electricity they use.
“The eMalahleni Local Municipality’s 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,” he explained.
Cosatu plans to engage 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, while enabling Eskom to fulfil its mandates.
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. @SAfmRadio @the_dtic @1Khosi_Meth @ilo @macua_sa @miningnews @MiningWeekly pic.twitter.com/RkAs8wQLEk
— @COSATU Today (@_cosatu) July 3, 2026
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