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JOHANNESBURG, Sept 1 (Reuters) - Glencore said on Monday that a retrenchment process has been initiated at its joint-venture Rustenburg ferrochrome smelter and vanadium operations in South Africa as significant economic pressures continue to impact the businesses.
South Africa holds approximately 80% of the world's known chrome ore reserves, according to Glencore, positioning the country as a key player in global ferrochrome production.
However, problems with power cuts, rising electricity prices and economic pressures forced the miners to suspend production at the venture's ferrochrome Boshoek, Wonderkop and Lion smelters in May.
The smelters are operated by the Glencore and Merafe Resources joint-venture.
"The (retrenchment) consultation process is as a result of the continuing economic pressures facing the South African ferrochrome industry and the lack of sustainable industry solutions that could alleviate the pressures in the near to medium term," Merafe said in a separate statement.
The process will affect the Boshoek and Wonderkop smelters in Rustenburg. In addition, the Lion smelter is currently being evaluated and may potentially see a reduction to half of its operating capacity, Glencore said in a statement.