04-07-2025
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
