[Johannesburg, South Africa —] Swiss multinational Glencore is considering halting operations and reducing its workforce by over 1,000 in South Africa, citing the country’s worsening power crisis and ongoing government talks over a cheaper electricity deal.
The crisis has disrupted Glencore’s mining activities, resulting in a notable drop in production. The potential closures and job cuts are being viewed as a direct response to the severe operational challenges posed by the power cuts.
While negotiations with the government for a discounted electricity package are said to be in progress, no final agreement has been reached at the time of reporting.
The power crisis in South Africa has been a persistent concern for businesses, with fears about the sustainability of operations in the country growing. Glencore’s contemplation of the shutdown underscores the economic risks associated with the power issue.
The potential impact on the mining sector, a major contributor to South Africa’s economy, is of particular concern. As the situation develops, more details about Glencore’s decision and its implications for the South African economy are anticipated.
Source: Africa. Businessinsider
