Tshipi é Ntle Manganese Mining will reduce exports over the the next three months by at least 35%, and by 30% in 2016, and has also started with a restructuring process that could see it cutting its workforce by up to 60%, it said on Monday.

The company noted in a statement that it sought to implement a business model that could be sustained under the prevailing market conditions. “Tshipi has complied with the prescribed Department of Mineral Resources and Department of Labour notifications and has elected to engage with potentially affected employees and trade unions in independently facilitated consultations under the auspices of the Commission for Conciliation, Mediation and Arbitration,” read the statement.

The company said manganese demand had declined in line with a weakening crude steel industry at a time when medium-grade manganese exports from South Africa had increased tenfold in the last decade. The free-on-board industry reference price for medium-grade semicarbonate manganese ore had plummeted from $3.20 per dry manganese ton unit (dmtu) in November last year to only $1.32 per dmtu in the last week of November, representing a 59% fall in the dollar price of the commodity.

“No medium-grade producer can produce manganese profitably at these prices. It is unlikely that the market next year will be able to absorb the current levels of production of South African medium-grade manganese ore and, hence, the oversupply is likely to continue with consequent impact on prices. “Market conditions are accordingly likely to persist for the foreseeable future,” it stated.

The company, meanwhile, announced the appointment of Wilco Uys as its new CEO, replacing Brendan Robinson from January next year. Robinson would remain a nonexecutive director on the board and would oversee Uys’ transition to CEO. 

 

Article from Internet for reference only