Civil unrest impacts Merafe Resources’ supply chains, says CFO Ditabe Chocho

The closure of the N3 highway, ports and railways due to civil unrest has impacted the movement of mining goods.

Over the last two weeks, South Africa has seen significant civil unrest as its citizens riot and loot across the country. Especially hard hit is the eastern province of KwaZulu-Natal, where a number of mining industry operators have been impacted by the unrest.

Merafe Resources CFO Ditabe Chocho told S&P Global Platts that the South African ferrochrome producer had seen the impact of the unrest on its supply chains. “Our business has been impacted particularly by certain supplies to our business, like gas, and some cargo to customers that have been disrupted by the unrest,” he said.

This comes after the N3 highway was closed entirely on 13 July and both KwaZulu-Natal ports of Durban and Richards Bay shut on 15 July. State-owned rail, port and pipeline enterprise Transnet declared force majeure on 14 July at both ports and on NATCOR (Natal Corridor).

“Movement of goods has been an issue. Our teams are monitoring the situation closely and will respond appropriately based on circumstances. Where feasible, contingency plans have been put in place to deal with the difficult situation faced,” Ditabe said.