The operator of South Africa’s final remaining manganese smelter, Transalloys (Pty) Ltd, has announced that it may have to retrench up to 600 employees as escalating electricity costs and increased global competition affect its operations. The company, based in the industrial town of eMalahleni east of Johannesburg, confirmed that it is currently operating only two of its five furnaces.
This development reflects broader challenges within South Africa’s metallurgical and mineral processing industries. Rising energy tariffs, infrastructure constraints, and intensified competition from international producers, particularly in Asia, have placed pressure on local processors of ferrochrome and manganese—both critical components in global steel production. South Africa holds approximately three quarters of the world’s identified manganese ore reserves, making the sector’s decline particularly significant for regional economic stability.
Transalloys Chief Executive Officer Konstantin Sadovnik stated that sustained operations have become increasingly difficult under current conditions. “We are competing against international smelters whose electricity costs are roughly half of ours. That gap makes sustained operation impossible,” he said.
The situation at Transalloys follows similar announcements from other producers. Earlier in December, Glencore confirmed the closure of two ferrochrome plants, while Samancor Chrome Ltd indicated that nearly 2,500 jobs may be affected as it scales down operations.
In June 2025, the South African Cabinet approved a plan to negotiate revised electricity tariffs for energy-intensive industries and to explore export control measures and potential levies on chrome ore. These proposals remain under consideration, and the idea of an export levy has drawn criticism from mining companies that argue it could further constrain profitability.
Sadovnik added that manganese smelting faces even greater challenges than ferrochrome production because of its high energy intensity. Without certainty on power pricing, Transalloys expects to proceed with a restructuring process by February 2026.
The case of Transalloys illustrates the complex intersection between industrial policy, energy costs, and employment in South Africa. eMalahleni, long a centre of coal-based industry, symbolises both the promise and the precarity of the country’s heavy industrial base. The situation has also prompted renewed debate about the future of African industrialisation in an era marked by volatile energy markets, environmental pressures, and unequal global trade structures.
Observers note that the sustainability of South Africa’s mineral processing sector will depend on policies that balance energy affordability, investment stability, and the social impacts of industrial transition. The challenges facing Transalloys and similar producers thus highlight the urgency of establishing a long-term industrial strategy that reflects both national economic priorities and the broader African imperative for inclusive, sustainable growth.
