2025-12-29 11:01:34

South Africa's last manganese smelting plant operator is in trouble. Rising electricity costs are threatening the plant's operations, potentially forcing layoffs of up to 600 people.

This case is noteworthy because it reflects a larger issue: the vulnerability of high-energy-consuming industries in the face of rising electricity prices. Whether traditional industries or crypto mining, when electricity prices remain high, profit margins are instantly squeezed. South Africa's manganese smelting plant was once a pillar of the industry, but now, due to the pressure from electricity costs, it has to consider large-scale layoffs.

This reminds us that energy prices not only affect individual companies but can also trigger chain reactions across the entire supply chain. For any business relying heavily on electricity, this is a sobering warning.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

7 Likes

Reward
7
5
Repost
Share

Comment

0/400

WhaleMistaker

· 4h ago

As electricity prices rise, high-energy-consuming industries begin to suffer... South Africa's situation is actually just a microcosm of this.

View OriginalReply0

DefiSecurityGuard

· 4h ago

exactly what i'm saying — energy costs are the real exploit vector nobody talks about. seen this pattern before with mining operations, suddenly unprofitable overnight. South Africa's case is textbook fragility... high operational overhead + volatile input costs = disaster waiting to happen. DYOR on your energy supplier dependencies, ngl this could cascade hard.

Reply0

ChainProspector

· 4h ago

When electricity prices rise, 600 people's jobs are gone—that's the reality. --- Why is it always the energy-consuming industries that can't withstand the pressure? Electricity prices really can bring everything down. --- South Africa's situation is essentially a death spiral of energy costs; both traditional industries and mining can't escape it. --- 600 people unemployed... just thinking about the electricity bills makes me feel heartbroken. --- So, without stable and affordable electricity, high-energy-consuming businesses simply can't operate. --- This energy crisis reminds me that finding places with cheap electricity is the key. --- It's the electricity prices again causing trouble—why can't any industry escape this disaster? --- The lesson learned from 600 lives lost: always factor in electricity costs.

View OriginalReply0

DegenTherapist

· 4h ago

Electricity costs can really kill any business, as seen in South Africa. The livelihoods of 600 people just disappeared, and miners should resonate with this. Energy costs are the Achilles' heel of all high-energy-consuming industries. When prices rise, all profits are wiped out. Why do electricity prices always go up first, pushing all costs upward, while wages stubbornly stay the same? This is the reality—traditional industries are just as fragile as the crypto world. When electricity costs spike, any business becomes unviable. Another industry brought down by electricity bills. I know several miners who are now losing money. The surge in electricity prices is truly a systemic problem, not just in South Africa, but worldwide. Behind the 600 layoffs is a game of cost control—there's no other way. The energy crisis is the real factor impacting the economy, more ruthless than any policy.

View OriginalReply0

BugBountyHunter

· 4h ago

If you don't manage energy costs well, even the strongest industry has to kneel. South Africa's situation is a vivid lesson. --- Another industry brought down by electricity costs. These days, it's too difficult to do manufacturing. --- 600 jobs lost just because electricity prices went up... Energy issues are truly the lifeblood of all industries. --- Whether mining or smelting, it's all about electricity costs. Whoever has cheaper electricity wins. This logic is too brutal. --- The South African manganese plant incident clearly shows what a fragile supply chain looks like. If one link breaks, everything collapses. --- When I saw this news, I immediately thought of mining farms. High-energy-consuming industries are dancing on the edge of a knife. --- When electricity costs soar, they immediately go from pillar industry to burden, leading to mass layoffs—it's very realistic. --- As this domino effect unfolds, it's not just the bosses who get hurt, but also the livelihoods of those 600 employees.

View OriginalReply0