In a significant shift for South Africa's industrial landscape, the National Union of Metalworkers of South Africa (NUMSA) has officially welcomed new developments between power utility Eskom and the smelting industry.
The union expressed strong support for Eskom's decision to adjust electricity tariff conditions to favor major players like Glencore, Samancor, and Alma Investments.
The core of the development lies in Eskom's submission to the National Energy Regulator of South Africa (NERSA) regarding a 62 cent per kilowatt-hour electricity tariff. NUMSA views this as a vital step in making the local smelting sector globally competitive, ensuring that local operations can compete with international markets while maintaining a sustainable energy cost.
A push for local beneficiation
For years, NUMSA has campaigned for beneficiation – the process of adding value to raw materials locally rather than exporting them in their raw state. The union argues that South Africa has historically exported jobs by sending minerals like Chrome and Manganese to the global north, only to import the finished products back at a higher cost.
Irvin Jim, the NUMSA General Secretary, emphasised that the country must move away from the traditional extraction and export model to build new sectors anchored by these minerals.
The union pointed to countries like Indonesia, which banned the exportation of nickel to bolster its own manufacturing sector, as a successful model for industrial strategy. This approach is seen as a necessary intervention to address the high levels of unemployment and poverty currently facing the nation.
The role of public utilities and industrial growth
The union used this breakthrough to underscore its stance on the public ownership of Eskom. NUMSA argues that this competitive tariff was only possible because Eskom remains a stated-owned utility.
According to the statement, a privatised utility would lack the strategic capacity or democratic mandate to prioritise industrialisation and job creation over profit margins.
The primary goals of this new tariff structure include re-opening smelters that have been mothballed and creating high-quality jobs that pay a living wage. By lowering the barrier to entry for heavy industry, the union hopes to reverse the trend of deindustrialization and address the deepening levels of inequality ravaging South African communities.
Call to action for NERSA
While NUMSA praised the leadership of Eskom Group Chief Executive Dan Marokane and Electricity Minister Kgosientsho Ramokgopa, they noted that the final hurdle remains with the regulator.
The union is now imploring NERSA to expedite the approval of these adjusted conditions so the sector can resume full operations. NUMSA believes that swift action from the regulator will catalyze a wave of re-industrialization, transforming South Africa from a mere mineral exporter into a manufacturing powerhouse.