BL Premium reports that mining company Assmang announced on Tuesday that it would be proceeding with the closure of its Cato Ridge Works (CRW) ferrochrome smelter in KwaZulu-Natal, which will put 600 jobs on the line.

Assmang, which mines iron ore, chrome and manganese in the Northern Cape, is jointly owned and operated by African Rainbow Minerals and holding company Assore. The closure will see 310 permanent and 290 contract workers retrenched by end-August. In a statement on Tuesday, the company blamed persistently weak manganese prices and rising input costs for CRW’s losses. “The recent announcement of a potential electricity tariff reduction will not be sufficient to rescue this business. Despite nonstop efforts to explore alternatives to closure, the operation has continued to experience significant financial losses which rendered CRW unsustainable,” Assmang indicated. Following the closure, the CRW complex is set to be converted into a “commercial and logistics hub”, with Assmang and Assore responsible for the cleanup and redevelopment. The land and buildings will be purchased by Assore SA’s property division, providing Assmang with a R453m cash injection.

• Read the full original of the report in the above regard by Jacob Webster at BusinessLive (subscriber access only)

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