12/01/2026
TRANSALLOYS AND NUMSA TALKS NOT YIELDING FRUITFUL RESULTS OVER 600 JOB LOSSES
The National Union of Metalworkers of South Africa and Transalloys management, convened a meeting at the Commission for Conciliation, Mediation and Arbitration (CCMA) in Emalahleni on Thursday, 08 January 2026 to discuss possible solutions to the recent retrenchment notice.
This comes after Transalloys, South Africa's last remaining manganese smelter issued a section 189A notice, which warns of potential retrenchments that may affect approximately 600 direct jobs.
An estimated 7,000 livelihoods linked to the smelter and the broader eMalahleni economy, through its supply chain and dependencies, could also be impacted if the company fails to secure relief from Eskom’s negotiated pricing agreement which became effective from 01 April 2025.
Transalloys General Manager Theo Morkel stated on the statement that the company has exhausted all other avenues for cost savings, including the use of affordable ores, rightsizing their staff complement, and suspending increases to their own staff and contractors working at Transalloys in 2025. “The end result is that our cost of production per tonne of product is considerably more than what the market price for manganese ferroalloys is and Transalloys has been making losses since the end of 2022.”
“We have had extensive discussions with Eskom officials over the years, but our electricity costs remain disproportionately high compared to other smelters in the industry. To remain competitive, we require a substantial reduction in electricity costs, aligning with our global competitors, as we are currently paying two to three times more for electricity than smelters in other countries.” Morkel said.
Morkel highlighted that the excessive electricity price increases in South Africa over the past two decades have severely impacted the smelting industry, resulting in significant job losses in smelters and supporting industries.
He cautioned that unless a sustainable solution to electricity tariffs is found, Transalloys will be forced to cease operations, ultimately relegating South Africa to a mere exporter of unrefined manganese ore.
NUMSA has not provided an update on the outcome of their meeting with Transalloys management.