Assmang Cato Ridge FeMn smelter closure reshapes South Africa’s manganese alloys

US Brimstone

The Cato Ridge FeMn smelter closure marks Assmang’s permanent exit from ferro-manganese production. ARM is restructuring its manganese alloy portfolio after heavy losses. Assmang will shut the Cato Ridge Works following a Section 189 process. All employees will be retrenched by 31 August.

Restructuring details and asset sales

Assmang will sell Cato Ridge properties to Assore for R453mn. It will also sell its Sakura Ferroalloys stake to Assore. Once closed, Assmang will distribute R900mn to ARM. Therefore, ARM crystallizes value while exiting loss-making alloy exposure.

Market implications for South African manganese

The Cato Ridge FeMn smelter closure reflects South Africa’s escalating cost pressures. High power tariffs and logistics constraints erode alloy competitiveness. As a result, selling manganese ore increasingly outperforms alloy conversion. The closure leaves one remaining manganese alloy producer in South Africa.

Downstream users should prepare for tighter high-carbon FeMn availability from South Africa. However, global supply remains supported by Asia and the CIS. Contract buyers may seek diversified sources or renegotiate premiums. Meanwhile, the Cato Ridge FeMn smelter closure may shift trade flows.

The Metalnomist Commentary

This shutdown ends a chapter in South Africa’s alloy beneficiation and concentrates risk in one producer. Watch Eskom tariffs, rail reliability, and Asian alloy capacity for the next price signal. Offtake renegotiations and premium adjustments are likely through year-end.