1 00:00:00,480 --> 00:00:03,440 Speaker 1: Now. The East African ferochrome industry has been on the 2 00:00:03,480 --> 00:00:08,000 Speaker 1: brink of collapse, with only a small fraction of furnaces 3 00:00:08,000 --> 00:00:11,719 Speaker 1: still operating due to higher electricity costs. ES come today 4 00:00:12,080 --> 00:00:15,360 Speaker 1: announcing an agreement to supply South Africa's ferochrome industry with 5 00:00:15,440 --> 00:00:19,759 Speaker 1: heavily discounted power for the next five years, following an 6 00:00:19,880 --> 00:00:24,440 Speaker 1: agreement on an unmended negotiated power agreement known as the NPA. 7 00:00:24,920 --> 00:00:27,360 Speaker 1: The agreement, which sets a tariff of sixty two cents 8 00:00:27,400 --> 00:00:31,160 Speaker 1: per kilowat hour, saves at least one five hundred jobs 9 00:00:31,520 --> 00:00:34,479 Speaker 1: under risk at the MEHRAF at glen Core Chrome Venture. 10 00:00:34,760 --> 00:00:38,360 Speaker 1: Let's chat now with the CEO. Yuppy Fullard, CEO at 11 00:00:38,400 --> 00:00:41,640 Speaker 1: glen Core Alloy is a yuppy welcome again to the 12 00:00:41,680 --> 00:00:45,440 Speaker 1: money show. This particular decision, I'm sure a reprieve for 13 00:00:45,520 --> 00:00:46,080 Speaker 1: the industry. 14 00:00:47,800 --> 00:00:51,960 Speaker 2: But two yes, good evening. Yeah, I can say that 15 00:00:53,080 --> 00:00:56,560 Speaker 2: it's been a long journey, it's been a long battle. 16 00:00:56,640 --> 00:01:01,319 Speaker 2: But I'm really pleased to be able to sit here 17 00:01:01,360 --> 00:01:04,080 Speaker 2: and to actually chat to you and say that yes, 18 00:01:04,120 --> 00:01:06,920 Speaker 2: the sixty two cents have been approved, and then also 19 00:01:07,440 --> 00:01:11,319 Speaker 2: that we have concluded our terms and conditions from a 20 00:01:11,319 --> 00:01:16,199 Speaker 2: commercial perspective, So I'm really pleased that we are here today. 21 00:01:16,280 --> 00:01:19,760 Speaker 1: Yes, for someone who doesn't understand what the main issue 22 00:01:19,880 --> 00:01:23,400 Speaker 1: is and what the crisis averted was in the particular industry, 23 00:01:23,800 --> 00:01:27,240 Speaker 1: eighty seven cents per kila? What hour was the previous charge? 24 00:01:28,160 --> 00:01:31,640 Speaker 1: Why is this too expensive for the pherochrome operators in 25 00:01:31,680 --> 00:01:35,119 Speaker 1: the country, and what is the international level in terms 26 00:01:35,160 --> 00:01:37,440 Speaker 1: of companies that you're competing with in the market. 27 00:01:39,160 --> 00:01:42,759 Speaker 2: Now, Look, I think it's very important to understand that 28 00:01:43,360 --> 00:01:46,480 Speaker 2: the sixty two cents will only bring us into equilibrium 29 00:01:46,680 --> 00:01:49,880 Speaker 2: there with the Chinese players. I think that's very important 30 00:01:49,880 --> 00:01:53,200 Speaker 2: to actually understand that at the eighty seven obviously with 31 00:01:53,400 --> 00:01:57,040 Speaker 2: our Lion smelt complex, we were able to at least 32 00:01:57,200 --> 00:02:01,240 Speaker 2: break even day with a god to our technology. I mean, 33 00:02:01,360 --> 00:02:04,920 Speaker 2: that's world loss technology that we've got there. So for us, 34 00:02:04,960 --> 00:02:07,920 Speaker 2: the sixty two sense will be able to put us 35 00:02:07,920 --> 00:02:12,160 Speaker 2: in a position to be competitive. Many many people are 36 00:02:12,160 --> 00:02:15,160 Speaker 2: thinking that we are at sixty two are going to 37 00:02:15,200 --> 00:02:17,359 Speaker 2: make a huge amount of profit, and I mean that's 38 00:02:17,360 --> 00:02:20,680 Speaker 2: not really true. It's more that we will be able 39 00:02:20,720 --> 00:02:23,919 Speaker 2: to convert our chrome or that we were sending to 40 00:02:24,560 --> 00:02:29,400 Speaker 2: China for the same effort we were rather converted in 41 00:02:29,480 --> 00:02:33,000 Speaker 2: South Africa and actually create jobs. So the sixty two 42 00:02:33,639 --> 00:02:37,640 Speaker 2: is the starting point to ensure that we can be 43 00:02:37,720 --> 00:02:44,280 Speaker 2: sustainable and also start to really, let's say, revive beneficiation 44 00:02:44,400 --> 00:02:45,079 Speaker 2: in South Africa. 45 00:02:46,120 --> 00:02:49,960 Speaker 1: Glen Coole has been operating quite tight in terms of 46 00:02:49,960 --> 00:02:52,520 Speaker 1: the smelters and the furnaces. You've had have you had 47 00:02:52,560 --> 00:02:56,360 Speaker 1: conversations with your workers, you know, preparing them for a 48 00:02:56,400 --> 00:02:59,200 Speaker 1: future where the deal may have not come through and 49 00:02:59,240 --> 00:03:01,040 Speaker 1: what the few which I had looked like for them, 50 00:03:01,080 --> 00:03:02,520 Speaker 1: had you had those conversations of it. 51 00:03:03,680 --> 00:03:06,880 Speaker 2: Oh, of course, Matthew. I mean we've been I've been 52 00:03:07,080 --> 00:03:10,639 Speaker 2: speaking to my people myself, I mean, addressing the masses myself. 53 00:03:11,160 --> 00:03:14,280 Speaker 2: It's not something that I leave over. I mean myself 54 00:03:14,320 --> 00:03:18,440 Speaker 2: and you know, Amanda Margru's chief operating officer. We went 55 00:03:18,480 --> 00:03:21,680 Speaker 2: to all the operations and had our conversations and there's 56 00:03:21,720 --> 00:03:24,320 Speaker 2: only two things that we promised them. And we promised 57 00:03:24,360 --> 00:03:26,400 Speaker 2: them first of all that we will pay them until 58 00:03:26,400 --> 00:03:29,080 Speaker 2: the thirty first of December, and that's a given. I 59 00:03:29,120 --> 00:03:32,639 Speaker 2: mean when we executed on the section one eighty nine 60 00:03:32,680 --> 00:03:35,520 Speaker 2: that was the first of September, that was what we 61 00:03:35,600 --> 00:03:38,640 Speaker 2: promised them. We promised them that we will pay them 62 00:03:38,760 --> 00:03:44,440 Speaker 2: in fu in apt all December twenty twenty five. And 63 00:03:44,480 --> 00:03:46,640 Speaker 2: the second thing is that we will fight with everything 64 00:03:46,640 --> 00:03:49,400 Speaker 2: we've got to make sure that we keep you know, 65 00:03:49,440 --> 00:03:52,280 Speaker 2: the you know, the plants and you know the smelters open. 66 00:03:52,400 --> 00:03:56,400 Speaker 2: And I am very pleased and humbled to say today 67 00:03:56,440 --> 00:04:00,080 Speaker 2: that we kept on paying them up up all today, 68 00:04:00,880 --> 00:04:04,320 Speaker 2: even when we extended our section one eighty nine's because 69 00:04:04,360 --> 00:04:07,920 Speaker 2: we were in lefts and negotiations with the government continuously. 70 00:04:08,640 --> 00:04:11,720 Speaker 2: And I must say I also want to acknowledge the 71 00:04:11,720 --> 00:04:14,720 Speaker 2: government is coming to the fore to really try to 72 00:04:14,720 --> 00:04:18,480 Speaker 2: find solutions. But you know, we you know, we definitely 73 00:04:18,520 --> 00:04:22,160 Speaker 2: had the deep conversations. They were prepared, they were already 74 00:04:22,839 --> 00:04:25,440 Speaker 2: you know when we when we entered into the section 75 00:04:25,480 --> 00:04:28,039 Speaker 2: one eighty nine. We didn't do that because we want 76 00:04:28,040 --> 00:04:31,880 Speaker 2: to threaten the government or we were in real trouble. 77 00:04:32,120 --> 00:04:34,479 Speaker 2: And that's the only reason why you do a section 78 00:04:34,560 --> 00:04:38,960 Speaker 2: onety nine is to is to find solutions prior to closure. 79 00:04:39,040 --> 00:04:42,640 Speaker 2: And I think, you know, many people understand a Section 80 00:04:42,720 --> 00:04:45,960 Speaker 2: one eighty nine wrong. In my view, it is to 81 00:04:46,040 --> 00:04:49,400 Speaker 2: really find solutions. And today I can sit here and 82 00:04:49,480 --> 00:04:54,960 Speaker 2: say to you that I'm really happy that we have 83 00:04:55,240 --> 00:04:58,120 Speaker 2: actually found a solution for us to really beneficiate in 84 00:04:58,120 --> 00:04:58,599 Speaker 2: South Africa. 85 00:04:58,680 --> 00:05:01,440 Speaker 1: Yeah, yeah, I can also Yeah the emotion in your voice, 86 00:05:01,440 --> 00:05:03,960 Speaker 1: it must have been pretty a tough time for you 87 00:05:04,080 --> 00:05:06,680 Speaker 1: and the workers. But somebody might ask the question, this 88 00:05:06,760 --> 00:05:09,880 Speaker 1: doesn't make sense. South Africa has seventy percent of the 89 00:05:09,920 --> 00:05:13,120 Speaker 1: world's chrome or reserves, so why is it so hard 90 00:05:13,600 --> 00:05:16,920 Speaker 1: to turn it around and have operations run so smoothly? 91 00:05:17,480 --> 00:05:20,039 Speaker 1: And I asked that question because I mean at eighty 92 00:05:20,400 --> 00:05:24,080 Speaker 1: at sixty something, since per kilo at hour, it sounds 93 00:05:24,120 --> 00:05:26,560 Speaker 1: like the power price is quite low, but compared to 94 00:05:26,600 --> 00:05:31,960 Speaker 1: other international you know, smelters, South Africa is quite high. 95 00:05:32,040 --> 00:05:35,320 Speaker 2: Yeah, I mean, look at sixty two, we are definitely competed. 96 00:05:35,600 --> 00:05:38,760 Speaker 2: I think that's the that's the big difference. I'm sure 97 00:05:38,760 --> 00:05:40,920 Speaker 2: that you know that what happened over the last couple 98 00:05:40,960 --> 00:05:45,360 Speaker 2: of years, I would lost less licens seven years ago. 99 00:05:46,279 --> 00:05:52,159 Speaker 2: Electricity prices have risen by nine hundred percent, actually nine 100 00:05:52,240 --> 00:05:56,159 Speaker 2: fifty four percent, where inflation only increased one hundred and 101 00:05:56,160 --> 00:05:58,440 Speaker 2: three percent. So you can see that there was a 102 00:05:58,520 --> 00:06:03,720 Speaker 2: clear difference in terms of electricity price increases versus the 103 00:06:03,760 --> 00:06:05,599 Speaker 2: rest of the world. So, I mean, if we are 104 00:06:05,680 --> 00:06:09,880 Speaker 2: at sixty two. It doesn't actually, I mean that's not 105 00:06:09,920 --> 00:06:13,839 Speaker 2: a solver bullet. I just want to make it also 106 00:06:14,000 --> 00:06:16,600 Speaker 2: clear that that the sixty two will only get us 107 00:06:16,640 --> 00:06:21,400 Speaker 2: into the ring to be able to fight. So otherwise 108 00:06:21,440 --> 00:06:24,000 Speaker 2: we could have just closed down all the furnaces and say, 109 00:06:24,120 --> 00:06:26,000 Speaker 2: you know what, all that we do is we just 110 00:06:26,120 --> 00:06:29,920 Speaker 2: export our all which you know which is also still important. 111 00:06:29,960 --> 00:06:33,080 Speaker 2: I mean, we can only convert eight million tons nine 112 00:06:33,120 --> 00:06:36,200 Speaker 2: million tons of chrome or into ferrochrome in South Africa. 113 00:06:36,279 --> 00:06:39,920 Speaker 2: We don't have the capacity of the Chinese. They've surpassed 114 00:06:39,960 --> 00:06:43,960 Speaker 2: us in twenty thirteen already, so exports will still happen. 115 00:06:44,080 --> 00:06:46,960 Speaker 2: But at least what this does it gives us as 116 00:06:46,960 --> 00:06:51,440 Speaker 2: the ferro corome NIS in South Africa and an opportunity 117 00:06:51,640 --> 00:06:55,039 Speaker 2: to be to be back into the ring. All right. 118 00:06:55,080 --> 00:06:57,919 Speaker 1: That was Yapi full out there talking about that deal 119 00:06:58,000 --> 00:07:02,919 Speaker 1: coming through from ESCAM to really shave off that electricity 120 00:07:02,960 --> 00:07:06,279 Speaker 1: costs for South African smelters and help save thousands of 121 00:07:06,360 --> 00:07:09,440 Speaker 1: jobs at the industrial sector, contributing just short of twenty 122 00:07:09,440 --> 00:07:12,880 Speaker 1: percent of the power utilities three hundred and forty billion 123 00:07:12,920 --> 00:07:16,240 Speaker 1: Rand revenue last year. But the collapse of the ferrochromeb 124 00:07:16,280 --> 00:07:19,280 Speaker 1: smelting industry meant it lost around eight billion Rand, so 125 00:07:19,800 --> 00:07:23,360 Speaker 1: with those businesses saved, hopefully it will get back to 126 00:07:23,400 --> 00:07:26,800 Speaker 1: a form where they do contribute around eight billion to ESCOM.