Key Points
- Ferromanganese plant revival depends on Eskom offering affordable power tariff.
- Khwelamet confirms it’s fully prepared to restart operations without delay.
- High electricity costs remain the major obstacle to plant operations.
Khwelamet, a ferromanganese manufacturer from South Africa, claims that it is prepared to immedi ately start up its idle facility as long as Eskom, the power company, offers a competitive electricity rate to support operations.
The declaration increases optimism for a revival of industrial activity in the country’s metals sector, despite the fact that rising energy costs continue to restrict growth.
After stopping operations some years ago due to unsustainable electricity pricing and operational costs, the company says it has completed internal technical modifications and acquired the required inputs.
However, in order to make restarting production financially feasible, a long-awaited pricing agreement with Eskom is still required.
A power tariff agreement is required before Ferromanganese can be restarted
One top Khwelamet executive told reporters, under condition of anonymity, “We are literally waiting for Eskom’s go-ahead on a competitive rate.” When that arrives in a few days, we can resume. All systems are prepared.
The revival of Khwelamet’s ferromanganese operations could lead to the restoration of hundreds of jobs and local supplier contracts in a region that has been severely affected by deindustrialization and unemployment.
The factory that was once an essential component of South Africa’s manganese value chain has lain inactive for more than three years.
Industry sources claim that Eskom’s industrial pricing structure makes it nearly difficult to sustain large-scale smelting plants like Khwelamet’s, with power costs accounting for up to 40% of operational costs in ferromanganese production.
According to Khwelamet, the plant is ready for immediate resuscitation
Company representatives confirmed that safety inspections, equipment modifications, and environmental compliance certificates are already in place.
The company also maintains active relationships with both domestic and foreign buyers and has warehousing arrangements ready to handle offtake.
All of the technical staff required for operations has been engaged or is on hand, according to a Khwelamet spokesman, indicating the company’s readiness to move quickly once a reasonable tariff is achieved.
According to a report by Mining weekly, local labor unions and industry groups are apprehensive about the delay because they say that Eskom’s bureaucratic hurdles are still hampering the nation’s industrial recovery.
Power costs delay ferromanganese production restart
Analysts warn that South Africa’s industrial output may continue to lag if high power rates prevent massive smelting and refining facilities from operating at scale.
“Energy-intensive sectors are the backbone of industrial employment. Johannesburg-based energy economist Tumi Lehloka said that if Eskom cannot offer tailored tariffs, we’ll keep seeing shutdowns.
South Africa is one of the world’s largest manga producers, but due to power instability, pricing restrictions, and infrastructure backlogs, its value-added capacity has recently declined.
It is believed that Khwelamet’s case foretells the future of the country’s metals industry. The ability or desire of Eskom to offer an industry-friendly contract could determine the future of other dormant projects in the pipeline.
