Power crisis in South Africa will play havoc with the ferro alloy smelters. I note that S32 is losing money producing ferro alloys in South Africa. The main problem is expensive power and its going to get more expensive, the planned furnace shutdown didn't help either.
I won't be surprised if S32 decides to sell or close the ferro manganese smelter business.
Time to move on, smelting in South Africa is a NO NO. Not only is power very expensive and getting more expensive but the load shedding is no good.
Maybe S32 should move to Sarawak Malaysia where the power/electricity costs less than US$0.04/KWh at the SCORE industrial park where OMH operates.
It would be funny if it wasn't so serious.
Eskom granted permission to increase electricity tariffs
In theory, the price of electricity could rise between 4% and 19% in April 2019.
https://www.thesouthafrican.com/eskom-electricity-price-hike-approved-2019/
The load shedding is taking its toll.
How can South Africa’s struggling power utility Eskom turn the lights back on?
While the state-owned power utility faces many challenges there are possible solutions that could help turn the lights back on.
By
Reuters
-
February 14, 2019
JOHANNESBURG (Reuters) – Struggling state-run power firm Eskom subjected South Africa to the worst power cuts in several years this week, after a decade of missteps when electricity sales stagnated and costs soared.
https://www.cnbcafrica.com/news/fin...-power-utility-eskom-turn-the-lights-back-on/
The story gets even worse, as the load shedding takes place, thieves are stealing all the copper cables.
Cable thieves thrive during load-shedding
https://mybroadband.co.za/news/energy/296128-cable-thieves-thrive-during-load-shedding.html
To solve all the problems, South Africa has now turned to Western Engineers to sort out the mess.
Eskom's hiring of foreign engineers slammed
https://www.iol.co.za/news/politics/eskoms-hiring-of-foreign-engineers-slammed-19298922
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