South African mining company announces 2,500 potential job cuts

South African mining firm, Samancor Chrome, has sent a letter to unions notifying them of the possibility that it could cut close to 2,500 jobs as a result of weak chrome prices and power supply problems.

This is coming barely 24 hours after the firm separately notified unions about 599 potential job cuts at its smelting operations and corporate offices and highlights how the struggles of state power utility Eskom are dragging on the economy.

The company informed that the jobs to be affected will be cut from the Eastern Chrome and Western Chrome mines.

Samancor, a private company, produces more than 1 million tonnes of ferrochrome, used to make stainless steel, per year, according to its website.

According to Reuters, Eskom is mired in financial crisis and beset by frequent breakdowns at its coal-fired power plants.

Restructuring the utility is a core component of an economic reform program that President Cyril Ramaphosa hopes will attract foreign investors and lift the economic growth rate.