NERSA’s approval of 62c/kWh tariff helps Glencore lift retrenchment process
Ferrochrome producer says tariff approval marks a major step toward stabilising operations and restarting smelting activities
Glencore Merafe Chrome Venture has welcomed the approval of a 62c/kWh electricity tariff for South Africa’s ferrochrome industry, describing the move as a significant milestone for the future of its smelting operations.
The announcement comes just a few months after the company initiated a Section 189 consultation process, citing concerns over the viability of its operations amid high electricity costs. In March this year, Glencore Merafe Chrome Venture informed employees of potential job losses after Eskom proposed the preferential tariff for the ferrochrome sector.
In a statement, the company confirmed that the National Energy Regulator of South Africa (NERSA) has approved the 62c/kWh tariff, a development it believes will help stabilise operations and support the long-term sustainability of the business.
“This approval represents a significant milestone and an important step towards stabilising operations and supporting a more sustainable future for the Venture’s smelting business,” the company said.
Glencore acknowledged the role played by Eskom, the Department of Electricity and Energy, recognised labour unions, NERSA and other stakeholders in securing the approval.
While welcoming the decision, the company noted that discussions with Eskom are continuing to finalise the detailed terms and conditions of the Negotiated Pricing Agreement (NPA), which will give effect to the tariff.
According to the Glencore, these terms remain critical in determining the commercial viability and long-term sustainability of the tariff arrangement.
Glencore added that it has lifted the Section 189 process, effectively halting the retrenchment consultations that had raised concerns among workers and industry stakeholders.
The company said the decision forms part of broader efforts to stabilise operations and support the phased restart of its business.
“The Venture remains focused on constructive engagement with Eskom and all stakeholders as it works to conclude the process and advance a sustainable path forward for the ferrochrome sector,” the statement said.
