Assmang Proprietary Limited, jointly owned by Assore South Africa and African Rainbow Minerals, has decided to permanently close its Cato Ridge Works Ferrochrome Smelter in KwaZulu-Natal following a consultation process in line with Section 189 of the Labour Relations Act. All affected employees will be retrenched effective 31 August 2025.

This decision came after a comprehensive review of the smelter’s operational and financial position. Despite continuous efforts to explore alternatives to closure, the operation has sustained significant financial losses, rendering CRW unsustainable. These losses are primarily due to prolonged weaknesses in global manganese alloy prices and escalating input costs, particularly electricity, which has increased by over 930% since 2008. The recent announcement of a potential electricity tariff reduction is insufficient to save the business.

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The Section 189 process, facilitated by the Commission for Conciliation, Mediation and Arbitration, involved meaningful engagement with affected employees and their trade union representatives. Assmang has fulfilled all its legal obligations and remains committed to ongoing communication with stakeholders, including employee representatives, community leaders, and relevant authorities.

Assmang has also reached an agreement with its shareholder partner Assore South Africa to dispose of its land holdings, including the CRW footprint, to Assore. The site will be remediated and, together with surrounding vacant land, redeveloped into a commercial and logistics hub aimed at generating future economic activity and employment in the area.

Approximately 310 permanent and 290 contract workers are affected. In partnership with Siyakha Consulting, Assmang is offering affected employees access to wellness programmes, financial planning and budgeting, CV writing, job-seeking assistance, reskilling options, and entrepreneurship training. Assmang extends its sincere gratitude to all employees for their contributions over the years and is committed to managing the closure with fairness, dignity, and full compliance with applicable laws.