Latest news with #Assmang
IOL News
04-07-2025
- Business
- IOL News
Assmang to close Cato Ridge smelter, over 500 jobs to be lost
Assmang Proprietary Limited has confirmed the permanent closure of its Cato Ridge Works (CRW) Ferromanganese Smelter in KwaZulu-Natal, with 600 employees set to lose their jobs. Image: Suppled Assmang Proprietary Limited has confirmed the permanent closure of its Cato Ridge Works (CRW) Ferromanganese Smelter in KwaZulu-Natal, with close to 600 employees set to lose their jobs. The closure will take effect on August 31, 2025. Assmang, jointly owned by Assore South Africa and African Rainbow Minerals, said the decision followed a "structured and comprehensive consultation process" in line with Section 189 of the Labour Relations Act. "Assmang has resolved to permanently close the business and operations of its Cato Ridge Works Ferrochrome Smelter (CRW) in KwaZulu-Natal. All affected employees will be retrenched effective 31 August 2025". The company said. "This decision was reached after a comprehensive review of the Smelter's operational and financial position". Assmang added that despite "nonstop efforts to explore alternatives to closure, the operation has continued to experience significant financial losses, which rendered CRW unsustainable". "These losses have been caused primarily by 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 will not be sufficient to rescue this business". Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Around 310 permanent and 290 contract workers will be retrenched by 31 August 2025. Assmang said they will transfer the Cato Ridge site and surrounding land to Assore South Africa, which plans to redevelop it into a commercial and logistics hub to stimulate future economic activity. "In partnership with Siyakha Consulting, Assmang is offering affected employees access to wellness programs, financial planning & budgeting, CV writing, employment seeking opportunities, reskilling program options, and entrepreneurship skilling". IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
01-07-2025
- Business
- IOL News
African Rainbow Minerals to close Cato Ridge Works and retrench the employees
Assmang's crushing and screening plant at the Cato Ridge works is being closed permanently, the site remediated, and along with some surrounding land, will be redeveloped into a freight and logistics hub. Image: Ingi Salgado African Rainbow Minerals (ARM) on Tuesday said its Cato Ridge Works operations (CRW) and business would close permanently, and all affected employees would be retrenched on August 31, 2025. Its Malaysia business is also being sold. The CRW joint venture between ARM, which has well known South African businessman Patrice Motsepe as its biggest shareholder, and Assmang employed about 600 employees. ARM stated that a structured and comprehensive consultation process in accordance with Section 189 of the Labour Relations Act had been completed. 'This decision has been reached after a comprehensive review of CRW's operational and financial position. Despite sustained efforts to explore alternatives to closure, the operation has continued to experience significant and unsustainable financial losses,' ARM's directors said in a statement on the JSE's news service. They indicated that the CRW complex would be remediated and, together with the vacant land, redeveloped into a commercial and logistics hub 'that should in future create significant economic activity and employment in the area.' Assmang's board had approved the sale by Assmang to Assore SA PropCo, an Assore subsidiary, of certain land parcels, properties, and houses on the terms a sale agreement signed on June 27, 2025, between Assmang, Assore SA PropCo, Assore, Cato Ridge Development Company (CRDC), Feralloys, and ARM. The so-called 'Cato Ridge Transaction' will be implemented in two phases: Phase 1 comprises the purchase by Assore SA PropCo from Assmang of certain land and houses situated on or close to CRW, which will be developed by Assore SA PropCo, together with a sale by Assore SA PropCo of a portion of those properties to certain host communities for no consideration. Phase 2 will comprise the sale and purchase by Assore SA PropCo from Assmang of the remaining land on which CRW is located. Assore SA PropCo would pay R453.23 million to Assmang. Assmang is responsible for the implementation of the clean-up and remediation, but Assore SA PropCo would accept certain responsibilities regarding the clean-up and remediation of specific portions of the land being sold. Among the conditions were that Assmang complete the construction and installation of a reverse osmosis water plant and brine dam, and Assmang had to comply with applicable environmental law. In addition, Assmang would dispose of its 54.36% interest in Malaysia manganese alloy producer, Sakura, to Assore, following which Assmang was expected to distribute R900m in cash to ARM. ARM's share price gained 0.59% to R173.08 on the JSE Tuesday afternoon, with the price having fallen over 20% over the past 12 months. Visit:
The Citizen
01-07-2025
- Business
- The Citizen
Hundreds to lose jobs in KZN as Motsepe-linked Assmang shuts down plant
'Following the closing of this transaction, Assmang is expected to distribute R900 million in cash to ARM, owned by Patrice Motsepe.' Hundreds of people are set to be retrenched as the Cato Ridge Works (CRW) plant, operated by Assmang, shuts down. Assmang is 50% owned by African Rainbow Minerals (ARM), founded by businessman Patrice Motsepe, and the remaining shares are owned by Assore, a South African-based mining company. ARM announced on Monday that, after several talks, Assmang has resolved to permanently close the business and operations of CRW. 'Assmang is among the top ten producers of ferromanganese globally.' Affected employees of Assmang The Sens announcement by ARM stated that affected employees will be retrenched effective 31 August 2025. 'This decision has been reached after a comprehensive review of CRW's operational and financial position. Despite sustained efforts to explore alternatives to closure, the operation has continued to experience significant and unsustainable financial losses.' According to Assmang's website, the company employs 358 permanent staff members and 193 contractors. It is not indicated how many employees will be affected by the closure of the CRW plant. ALSO READ: Concerns over Mantashe's changes to draft mineral resources bill Assmang's land to go on sale The announcement also addressed how the assets of Assmang will be disposed of, which includes land, properties and houses in the Cato Ridge development company. ARM stated that the board has approved the sale of certain land parcels, properties and houses to Assore SA PropCo, a wholly-owned subsidiary of Assore. 'The CRW complex will be remediated and, together with the vacant land, redeveloped into a commercial and logistics hub that, in the future, is expected to generate significant economic activity and employment in the area.' The Cato Ridge transaction According to the announcement, the Cato Ridge transaction will be completed in two phases. 'Phase 1: comprising of the purchase by Assore SA PropCo from Assmang of certain land and houses situated on or close to CRW, which will be developed by Assore SA PropCo, together with a sale by Assore SA PropCo of a portion of those properties to and for the benefit of certain host communities for no consideration. 'Phase 2: comprising of the sale and purchase by Assore SA PropCo from Assmang of the remaining land on which CRW is located.' ALSO READ: Harmony mine worker dies: Possible 10th on-duty fatality this year? How much will Assore pay ARM added that Assore SA PropCo is set to pay R453 226 500 to Assmang for the purchase. Assmang also held certain interests in Sakura Ferroalloys, a low-cost producer of manganese alloys. 'In addition to the transaction referred to above, Assmang, Assore SA, Sakura and ARM have entered into a sale agreement which provides (amongst other things) for the sale by Assmang to Assore of all of the shares in Sakura that are held by Assmang (being 54.36% of the issued shares of Sakura).' How much is Motsepe set to benefit According to ARM's announcement, the mine is set to receive R900 million after the transaction from Assmang. 'Following the closing of this transaction, Assmang is expected to distribute R900 million in cash to ARM. 'The risk and benefit of the Sakura Disposal shall pass to Assore SA with effect from the Effective Date of 1 July 2024, even though legal ownership will pass on the closing date. Assore will also procure the release of Assmang from any obligations arising out of any suretyship, guarantee, indemnity, security or similar agreement that Assmang has entered into for the benefit of Sakura.' NOW READ: SA's shrinking mining sector and the policies that brought us here
