Zestaponi Ferroalloy Plant and Chiatura Management Company of Georgian Manganese, a producer and exporter of ferroalloys and manganese ore, have suspended operations until March 1 following a “significant decline” in silicomanganese prices on the global market and decreased demand over the past two years.
In a statement published on social media, Georgian Manganese linked the complete stoppage of the production process in Chiathura to the “radical protest” of the residents of the village of Shukruti.
Georgian Manganese cited “difficulties” for Chiatura Management Company in supplying ore “due to picketing by local residents”, which it said had “paralyzed seven out of twelve mines” in the western town.
The Plant will enter temporary management, with production capacities “completely shut down” and ferroalloy production halted, Georgian Manganese said, adding employees would be paid 60% of their salary during the period and “maintain their full insurance benefits”.
The company added management “remains hopeful for an improvement” in global market conditions, which it said would allow for an earlier resumption of operations.
